Blog Simple, relevant and practical: Our Nexova blog provides founders, startups and SMEs with the latest information on digital accounting and business management. Get in touch! All Accounting Business Tax and Legal Search for: Accounting February 21, 2024 | David Merz Expense Regulations: What to Consider A company’s expense reimbursement regulations play a crucial role in maintaining financial transparency and ensuring fair compensation for their employees. The Swiss tax authorities impose specific guidelines and regulations pertaining to expense reimbursements. In this blog, we explore all the significant aspects of expense regulations in Switzerland, with a focus on taxation, types of expenses recognized for reimbursement, effective versus flat-rate reimbursement methods, and the important issue of having your company’s expense regulations approved by the tax administration. Read more February 21, 2024 | David Merz Employee Gifts and Benefits in Kind: What to Consider from a Tax Perspective The culture of showing appreciation towards employees through gifts and added benefits is on the rise in Switzerland. More companies are realizing the great potential of these practices in motivating their employees, enhancing satisfaction, and nurturing a positive work environment. However, if you are planning to gift your employees, you need to understand the income tax and VAT implications. In this article, we explore the topic of employee gifts and benefits in kind. We examine the differences between them, their advantages, and importantly, the various tax implications involved. Read more February 21, 2024 | David Merz New Stock Corporation Law: What are the Relevant Changes for SMEs? The recently enacted stock corporation laws in Switzerland have brought about crucial changes to the existing regulations, some of which are especially relevant to small and medium enterprises (SMEs). These reforms aim to enhance capital flexibility, strengthen shareholder rights, and modernize rules for shareholder meetings to align with the digital era. In this blog, we outline the most significant changes to the law, and explain what you need to know about updating your company’s statutes during this critical transition period. Read more February 21, 2024 | David Merz Net Tax Rate Method When calculating and declaring VAT in Switzerland, not all companies have to follow the conventional effective billing method. This blog explores the net tax rate method as an alternative to the effective billing approach. We outline what the net tax rate method is, who can use it, and how it works in practice. We also examine the relative advantages and disadvantages of this approach and conclude on when it makes sense to use it. Read more December 27, 2023 | David Merz Setting up a company in Switzerland as a foreigner Switzerland is an attractive jurisdiction for foreign entrepreneurs looking to establish a company. With its strategic location in the heart of Europe, excellent economy and infrastructure, and highly skilled workforce, Switzerland offers numerous opportunities for foreign investors. In this article, we will explore the process and requirements for setting up a company in Switzerland as a foreigner, along with some important factors to consider while doing so. Read more December 26, 2023 | David Merz Statutes of a Company: Understanding the Legal Framework for GmbH and AG The backbone of a well-structured company is its statutes, or “articles of association”. These crucial founding documents establish the internal rules by which any company in Switzerland operates and guides its purpose. Drafting them for the first time or making a later alteration calls for the utmost care and expertise. In this blog, we provide a comprehensive explanation of what these statutes are and what information they should include. We also explore in detail what it takes to make changes to a company’s statutes after it has been incorporated. Read more December 24, 2023 | David Merz ANobAG: How to deal with social security contributions? In an increasingly globalized world where “employment borders” are dissolving, more employees in Switzerland have foreign employers. There is nothing fundamentally illegal about employment arrangements like this, yet they do create additional complexities surrounding labor law and social security. In this blog, we explore these issues in depth, specifically how to deal with social security contributions for these types of employees, who are also known as ANobAG. Read more December 24, 2023 | David Merz Capital Deposit Account: Which Bank Should You Choose? Setting up a limited liability company (GmbH) or Stock Corporation (AG) in Switzerland comes with various legal and financial requirements. One of the most basic of these is the formation of a special capital deposit account in which to pay the minimum registered share capital of the company during the incorporation process. This article explores the intricacies of capital deposit accounts, how the deposit process works in practice, it’s associated costs, and most importantly, how to choose the right bank for opening a capital deposit account in Switzerland. Read more December 24, 2023 | David Merz Founding a Company with Contributions in Kind When incorporating a new company in Switzerland or converting a sole proprietorship into an AG or GmbH, it is possible to fulfil the capital requirements with contributions in kind instead of a cash deposit. This is useful for those with existing and useful assets but limited free capital. In this article, we explore the practicalities of this process. We explain what is meant by a contribution in kind and what types of assets qualify, how to value these assets, and the requirements and costs for establishing contributions in kind when incorporating a new company. Read more December 23, 2023 | David Merz Partial Taxation of Dividends in Switzerland Partial taxation of dividends in Switzerland offers a welcome respite from the economic burden of double taxation. In this article, we discuss the issue of double taxation of dividends and the solution of partial taxation implemented in 2009, as well as the adjustments brought about by the STAF initiative in 2020. We provide insights into eligibility criteria, methods of partial taxation, and other key considerations. We also explain the importance of seeking expert guidance when navigating the intricacies of taxation of dividends while staying compliant. Read more of 11
Accounting February 21, 2024 | David Merz Expense Regulations: What to Consider A company’s expense reimbursement regulations play a crucial role in maintaining financial transparency and ensuring fair compensation for their employees. The Swiss tax authorities impose specific guidelines and regulations pertaining to expense reimbursements. In this blog, we explore all the significant aspects of expense regulations in Switzerland, with a focus on taxation, types of expenses recognized for reimbursement, effective versus flat-rate reimbursement methods, and the important issue of having your company’s expense regulations approved by the tax administration. Read more
February 21, 2024 | David Merz Employee Gifts and Benefits in Kind: What to Consider from a Tax Perspective The culture of showing appreciation towards employees through gifts and added benefits is on the rise in Switzerland. More companies are realizing the great potential of these practices in motivating their employees, enhancing satisfaction, and nurturing a positive work environment. However, if you are planning to gift your employees, you need to understand the income tax and VAT implications. In this article, we explore the topic of employee gifts and benefits in kind. We examine the differences between them, their advantages, and importantly, the various tax implications involved. Read more
February 21, 2024 | David Merz New Stock Corporation Law: What are the Relevant Changes for SMEs? The recently enacted stock corporation laws in Switzerland have brought about crucial changes to the existing regulations, some of which are especially relevant to small and medium enterprises (SMEs). These reforms aim to enhance capital flexibility, strengthen shareholder rights, and modernize rules for shareholder meetings to align with the digital era. In this blog, we outline the most significant changes to the law, and explain what you need to know about updating your company’s statutes during this critical transition period. Read more
February 21, 2024 | David Merz Net Tax Rate Method When calculating and declaring VAT in Switzerland, not all companies have to follow the conventional effective billing method. This blog explores the net tax rate method as an alternative to the effective billing approach. We outline what the net tax rate method is, who can use it, and how it works in practice. We also examine the relative advantages and disadvantages of this approach and conclude on when it makes sense to use it. Read more
December 27, 2023 | David Merz Setting up a company in Switzerland as a foreigner Switzerland is an attractive jurisdiction for foreign entrepreneurs looking to establish a company. With its strategic location in the heart of Europe, excellent economy and infrastructure, and highly skilled workforce, Switzerland offers numerous opportunities for foreign investors. In this article, we will explore the process and requirements for setting up a company in Switzerland as a foreigner, along with some important factors to consider while doing so. Read more
December 26, 2023 | David Merz Statutes of a Company: Understanding the Legal Framework for GmbH and AG The backbone of a well-structured company is its statutes, or “articles of association”. These crucial founding documents establish the internal rules by which any company in Switzerland operates and guides its purpose. Drafting them for the first time or making a later alteration calls for the utmost care and expertise. In this blog, we provide a comprehensive explanation of what these statutes are and what information they should include. We also explore in detail what it takes to make changes to a company’s statutes after it has been incorporated. Read more
December 24, 2023 | David Merz ANobAG: How to deal with social security contributions? In an increasingly globalized world where “employment borders” are dissolving, more employees in Switzerland have foreign employers. There is nothing fundamentally illegal about employment arrangements like this, yet they do create additional complexities surrounding labor law and social security. In this blog, we explore these issues in depth, specifically how to deal with social security contributions for these types of employees, who are also known as ANobAG. Read more
December 24, 2023 | David Merz Capital Deposit Account: Which Bank Should You Choose? Setting up a limited liability company (GmbH) or Stock Corporation (AG) in Switzerland comes with various legal and financial requirements. One of the most basic of these is the formation of a special capital deposit account in which to pay the minimum registered share capital of the company during the incorporation process. This article explores the intricacies of capital deposit accounts, how the deposit process works in practice, it’s associated costs, and most importantly, how to choose the right bank for opening a capital deposit account in Switzerland. Read more
December 24, 2023 | David Merz Founding a Company with Contributions in Kind When incorporating a new company in Switzerland or converting a sole proprietorship into an AG or GmbH, it is possible to fulfil the capital requirements with contributions in kind instead of a cash deposit. This is useful for those with existing and useful assets but limited free capital. In this article, we explore the practicalities of this process. We explain what is meant by a contribution in kind and what types of assets qualify, how to value these assets, and the requirements and costs for establishing contributions in kind when incorporating a new company. Read more
December 23, 2023 | David Merz Partial Taxation of Dividends in Switzerland Partial taxation of dividends in Switzerland offers a welcome respite from the economic burden of double taxation. In this article, we discuss the issue of double taxation of dividends and the solution of partial taxation implemented in 2009, as well as the adjustments brought about by the STAF initiative in 2020. We provide insights into eligibility criteria, methods of partial taxation, and other key considerations. We also explain the importance of seeking expert guidance when navigating the intricacies of taxation of dividends while staying compliant. Read more
