What is a tax representation and when do I need it?

A tax representation is a tax representative for foreign companies that become subject to tax in Switzerland. It is mandatory for companies without a Swiss headquarters that need to account for VAT or have other tax obligations.

Tax representation is an important instrument for international business relationships with Switzerland. Here is a comprehensive explanation:

Definition and legal basis:

What is a tax representation?

• Tax representative: Person or company that represents foreign companies before Swiss tax authorities
• Legal representation: Power of attorney for all tax matters
• Compliance assurance: Adherence to all Swiss tax laws
• Communication interface: Connection between foreign company and authorities
• Liability protection: Professional handling of tax obligations

Legal basis:

• VAT Act: Art. 63 regulates tax representation
• VAT Ordinance: Detailed provisions
• Federal Direct Tax Act: Regulations for income and profit taxes
• Cantonal tax laws: Local particularities
• International agreements: Consider double taxation agreements

When is a tax representation mandatory?

VAT registration:

• Revenue threshold: CHF 100,000 annual revenue in Switzerland
• Service provision: Services for Swiss customers
• Goods deliveries: Import/export business
• Events: Events and fairs in Switzerland
• Digital services: Online services for Swiss consumers

Direct taxes:

• Permanent establishment: Physical or economic presence
• Real estate ownership: Land or buildings in Switzerland
• Withholding tax: On dividends, interest or royalties
• Construction work: Construction projects over a certain period
• Employee secondment: Employees for more than 90 days

Tax representation at Findea.ch:

We offer comprehensive tax representation services:

• VAT registration: Complete registration and handling
• Ongoing support: All returns and payments
• Compliance assurance: Adherence to all regulations
• Advisory: Tax optimization and structural advice
• Transparent pricing: Fair and understandable cost structure

Conclusion: A tax representation is essential for many foreign companies to be legally and efficiently active in Switzerland. Professional providers like Findea.ch ensure compliance and cost efficiency.