Taxes

Cryptocurrencies must be declared as assets in the tax return, with false statements potentially leading to consequences. The valuation is carried out using official year-end exchange rates or common marketplaces.

Individuals subject to withholding tax must file a tax return if their income or assets exceed certain limits. Voluntary submission can lead to a reduction in the tax burden.

Sole proprietorships tax their profits personally, as they are not considered separate legal entities. Business expenses and losses can be deducted for tax purposes to reduce taxable income.

The capital contribution principle, introduced on January 1, 2011, allows the tax-free distribution of capital contributions to shareholders. It replaces the nominal value principle, which only allowed the repayment of the nominal value to be tax-free.

Anyone who does not file their tax return in Switzerland even after a reminder must expect a discretionary assessment. This estimates the taxable income based on empirical figures or standard of living.

Swiss tax laws allow deductions such as production costs, general deductions, and social deductions to reduce income tax. Each category targets specific expenses or personal situations of the taxpayer.

All one-time and recurring income is taxable in Switzerland, difficult to delineate due to abstract legal definitions. However, there are defined categories of taxable and tax-free income to provide guidance.

In Switzerland, income tax is based on personal or economic affiliation. It begins with establishing residency or economic activity and ends with departure or death.

Swiss citizens will vote on February 13, 2022, on the abolition of the emissions tax to facilitate capital raising for companies. The emissions tax of 1% primarily targets the issuance of company shares and generated around 250 million francs in 2020.