Tax and Legal June 24, 2023 | David Merz Input tax in Switzerland: What can be claimed? The ability to claim input tax deduction is a key feature of the VAT system. It allows businesses to recover the VAT they have paid on purchases and pass on their VAT liability to the end consumer. In this article, we explore the concept of input tax deduction in Switzerland. We explain which businesses are eligible to claim back the input tax they have incurred, and the specific requirements they must fulfil to be able to do so. Read more
June 23, 2023 | David Merz Maximizing Your Earnings: A Closer Look at VAT on Holiday Home Rentals in Switzerland Many individuals and families decide to invest in a second home or holiday home in Switzerland. If this applies to you, or if it’s something you’re considering, it’s important that you understand the associated tax implications. In this article, we explore the different taxes which apply to second homes in Switzerland, including income tax, value-added tax (VAT), capital gains tax, and real estate transfer tax. We will pay special attention to the VAT liability which arises due to renting a holiday home. Read more
February 3, 2023 | Marco Schoch Comparison of minimum capital tax rates for companies in all 26 cantons Swiss companies are subject to two types of taxes: taxes on profits and a capital tax on equity. However, some cantons have introduced a flat minimum tax to cover the costs associated with conducting tax audits for each company. This tax is often overlooked, especially in the start-up phase of newly founded companies that are not yet making a profit. In this article, we delve into the world of corporate taxes in Switzerland and in particular the minimum tax that some cantons in Switzerland levy on companies. Read more
February 2, 2023 | David Merz Maximising tax benefits: The choice between a company car and a private car In this article, we examine the tax implications of using a car for private and business purposes, covering scenarios of using a company car for private purposes and a private car for business purposes. We discuss calculating private share, social security contributions, and VAT for a company car. We also highlight the importance of recording mileage, possible cost savings, and restrictions when using a private car for business purposes. Read more
January 18, 2023 | Marco Schoch Financing self-employment in Switzerland with early withdrawals from pillar 3a and the pension fund Self-employment has become a popular option for many people in Switzerland. It offers more flexibility, independence and the opportunity to make their own financial decisions. However, becoming self-employed requires sufficient funding, and for many people, early withdrawal from the pension fund and pillar 3a can be a valuable source of funding. In this blog, we go into the legal provisions and procedures for early withdrawals from pillar 3a and the pension fund in Switzerland and explain how they can be used to finance self-employment. Read more
August 7, 2022 | Marco Schoch What to do when your tenant doesn’t pay their rent? Rent payments are firmly planned income for landlords. Therefore, as well as being frustrating, missing rent payments can cause significant financial harm. When tenants fail to pay their rent, many property owners suddenly face major challenges, such as paying mortgage interest out of their own pocket. Unfortunately, most landlords are faced with missing rent payments sooner or later. When this happens, it is vital to quickly take the right steps while acting in a legally compliant manner. In this article, we will provide a step-by-step guide on how to quickly remove tenants who are unwilling to pay their rent. Read more
July 25, 2022 | Marco Schoch Tax optimisation for companies: How can you save taxes as the owner of an AG or GmbH? Legislators assume that taxpaying companies and individuals exhaust all legal means for deductions and optimisations in their tax return, and this practice is perfectly acceptable. Therefore, it is also worthwhile following the guidelines of the Federal Tax Administration (FTA) carefully so as to benefit from all possible tax optimisations. In this article, you will learn more about how you can optimise your taxes as an entrepreneur. An entrepreneur in Switzerland can optimise their taxes at two levels: at the level of the company and at the level of the private individual. Follow these tips to easily optimise your taxes: Read more
July 20, 2022 | David Merz Comparison of legal forms: How to make the right choice for your company Choosing the right legal form for your company is crucial when starting a new business or working as a freelancer. The choice of legal form depends on several factors, such as liability, initial capital needed, decision-making power and taxes to be paid. Choosing the right form is not always easy. We help you by presenting the most important legal forms and comparing their advantages and disadvantages. Read more
July 16, 2022 | Marco Schoch Tax comparison for companies: Which is the most tax-efficient canton in 2022? Companies in Switzerland pay two different corporate taxes: a profit tax and a capital tax, which is a tax on equity. The profit tax is levied at the federal, cantonal, and municipal levels. Due to the federal system, there is tax competition between the cantons and the communes. The assessment is carried out by the canton, which means that certain tax deductions vary from canton to canton. The tax burden varies significantly in Switzerland. In this article, you will find out which location is particularly tax-favourable for your company. Read more