Taxes

More and more cantons are offering the option to fill out and submit tax returns online; a process that avoids paper chaos and allows access to data around the clock. For the online tax return, one needs access to the cantonal tax software and all relevant documents in electronic form.

The notional rental value, a fictitious rental amount, must be taxed as income by homeowners in Switzerland. Mortgage interest and maintenance costs are tax deductible, but not value-enhancing investments.

Bitcoin breaks through the $50,000 mark; crypto gains are often tax-free, except in the case of commercial trading or mining. There is a tax liability for crypto assets.

The treatment of professional expense deductions due to Corona varies by canton, some allowing usual deductions and others recognizing special home office costs. Details of the tax regulations differ by canton, with some allowing general deductions and others costs for home office use.

Home office setup is tax deductible if used exclusively for work and 40% of the time is worked from home. However, meal costs and flat-rate professional expenses are not deductible.

New tax year begins; optimal preparation facilitates the tax declaration. Collecting documents and checking deductions can save time and money.

From 2021, new rules apply to withholding tax in Switzerland, with options to switch between this and ordinary taxation. Changes occur through status changes such as citizenship or marriage.

On January 1, 2021, new regulations on withholding tax came into effect in Switzerland, which detail the rights and obligations of employers and employees. Employees are entitled to have withholding taxes shown on their payroll statements, while employers are obliged to remit and report these taxes correctly.

The new Swiss source taxation law comes into effect on January 1, 2021, and regulates income taxes for domestic and foreign workers. Details and regulations are recorded in Circular No. 45.