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Tax and Legal

December 15, 2025 | David Merz

The OECD Minimum Tax: What Swiss Businesses Need to Know About the 15% Global Tax Floor

The global tax landscape shifted dramatically when Switzerland joined over 140 countries in implementing the OECD minimum tax—a 15% floor ensuring multinational enterprises pay minimum tax wherever they operate. For large multinationals, this represents the most significant change to international tax rules in decades. This article examines what the OECD minimum tax means for Swiss businesses, how Switzerland implemented it following a 2023 referendum, which companies are affected, and what the future holds after the US withdrawal.

November 19, 2025 | David Merz

Coordination Deduction 2025: Complete Guide for Swiss Employers and Employees

Understanding the “coordination deduction” is vital for proper pension planning in Switzerland. The CHF 26,460 deduction (as of 2025) directly affects how much of your salary gets insured under the second pillar. This seemingly minor technical detail can have a major impact on retirement security and presents challenges for part-time workers and those with multiple employees. This guide covers everything you need to know about the coordination deduction: what it is, how it's calculated, whether employers can waive or reduce it, its impact on part-time workers and multiple job holders, and the implications of the failed BVG 21 reform.

September 16, 2025 | David Merz

Conversion of a sole proprietorship into a GmbH or AG

Many entrepreneurs begin their journey with a sole proprietorship. It's simple to set up, requires no minimum capital, and offers full control. But as the business grows, so do the legal, financial, and reputational demands. At some point, converting your company into another legal form – such as a GmbH or an AG – becomes a logical next step and offers numerous advantages. This article explains when and why converting your sole proprietorship makes sense, the legal mechanisms available for doing so, and how to complete the process correctly while avoiding unexpected tax consequences.

September 3, 2025 | David Merz

Understanding Swiss Withholding Tax: What Is It, Who Pays It, and How do You Reclaim It?

Withholding tax (Verrechnungssteuer) is a distinctive feature of Switzerland’s fiscal system. It is a federal tax that is primarily designed to reduce tax evasion on capital income. Set at a standard flat rate of 35% (with some exceptions), it applies to dividends, interest, lottery winnings, and certain insurance benefits. It is withheld directly at the source and is usually refunded to the taxpayer if they correctly declare their investment income. In this article, we’ll break down how Swiss withholding tax works, which income it affects, how you can reclaim it, and what you should watch out for—whether you're a Swiss resident, an international investor, or a company operating in Switzerland.

June 28, 2025 | David Merz

Limited Liability in a GmbH and AG: Where It Holds and Where It Doesn’t

The stock corporation (AG) and limited liability company (GmbH) are two of the most popular legal forms for businesses in Switzerland. One of their main features is that they are both designed to provide limited liability, meaning shareholders’ personal assets are protected from the company’s debts and obligations. However, the important question is, just how foolproof is this protection in reality? This article explains how limited liability works in Swiss AGs and GmbHs, when it breaks down in practice, and under what conditions directors and managing shareholders can be held personally liable. It also covers the consequences of liability, relevant time limits, common risk scenarios, and strategies to help minimize personal exposure.

June 10, 2025 | Nexova AG

Overview of the New Data Protection Act 2023 and Its Impact on Companies

In this age of information, the use of personal data is at the core of most business models. With digital transformation accelerating, the way companies collect, process, store, and transfer data has evolved rapidly. To keep up with these changes, Switzerland introduced a completely revised Federal Act on Data Protection (nFADP or nDSG), which came into force on 1 September 2023. This new legal framework modernizes Swiss data protection law, aligns it more closely with international standards such as the EU General Data Protection Regulation (GDPR), and introduces several new rights for individuals (data subjects) and obligations for companies. This article provides a detailed overview of the key elements of the revised law, who it affects, what’s changed, and what steps Swiss and international companies must take to ensure compliance.

May 26, 2025 | David Merz

Are Continuing Education Costs Tax Deductible in Switzerland?

In Switzerland, ongoing professional development is an important part of almost every career journey, but further education and training often means taking on substantial personal costs. Fortunately, Swiss tax law provides significant deductions for many types of job-related education and training expenses. In this article, we outline the legal basis for these deductions, explain who can claim them, which expenses qualify, and how the rules differ between federal and cantonal tax authorities. We'll also clarify some commonly misunderstood details and show you how to make the most of the available tax relief.

May 13, 2025 | David Merz

Changing a Company’s Domicile Address in the Commercial Register

Business owners in Switzerland need to understand the administrative requirements and legal implications of changing their company’s domicile address. Whether relocating within the same municipality, to a different municipality in the same canton, or across cantonal borders, businesses must ensure that their new address is properly registered with the commercial register. The complexity of the process depends on the type of business entity and the extent of the domicile change. Some changes require only a simple address update, while others involve amendments to the Articles of Association, notary certification, and re-registration in a new canton. This guide provides a step-by-step breakdown of the different scenarios and requirements involved in changing a company’s domicile address.

April 29, 2025 | David Merz

Full Insurance vs Semi-Autonomous: Which Occupational Pension Model is Right for Your Company?

In our earlier article, we explored the important topic of choosing the right occupational pension fund (BVG) for your company In this article, we will expand on one critical aspect of occupational pensions for smaller companies—especially SMEs—that do not have their own pension fund: should they opt for a full insurance model or a semi-autonomous solution? Each model has its own advantages and trade-offs in terms of security, return potential, administrative requirements, and risk distribution. We explore both approaches in detail to help you make an informed decision that aligns with your company’s risk tolerance, financial goals, and long-term planning.

February 5, 2025 | Marco Schoch

Which is the most tax-efficient canton for companies in 2025?

Swiss companies pay varying corporate tax rates depending on their canton of residence. These include profit tax on earnings and capital tax on equity. These taxes are levied at federal, cantonal, and municipal levels. As a result, there is significant tax competition between the country's 26 cantons, with profit tax rates in cantonal capitals ranging from 11.85% to 20.54% in 2025. In this article, we examine the most tax-efficient Swiss cantons for businesses in 2025, compare profit and capital tax rates across all regions, and explain how strategic location choice can substantially reduce your company's overall tax burden.

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