Tax and Legal

January 21, 2025 | David Merz

Subsequent Pillar 3a Purchases - Filling the Contribution Gaps

The newly enacted 2025 Pillar 3a purchase rules mark a significant shift in Switzerland’s retirement savings landscape, allowing employees to fill contribution gaps and enhance their financial security. While these changes offer new opportunities for tax savings and flexibility, they come with limitations and administrative challenges. This article explores the new provisions, their implications for taxpayers, and how they compare to the original Ettlin Motion, providing insights for effective retirement planning.

January 20, 2025 | David Merz

2025 Partial Revision of the Value Added Tax Act (MWSTG)

On 1st January 2025, significant changes to the Value Added Tax (VAT) laws were implemented in Switzerland. The partial revision of the VAT Act (MWSTG) represents a significant step toward modernizing the country’s tax framework in a rapidly digitalizing world. The changes primarily address the growing prominence of e-commerce platforms but also includes broader updates aimed at simplifying processes, increasing transparency, and closing gaps in compliance. This article explores the key changes to Swiss VAT, their implications for businesses, and practical steps for navigating the new rules effectively.

January 8, 2025 | David Merz

Dealing with Financial Distress: Underbalance, Capital Loss, and Over-Indebtedness

Financial distress can create significant challenges for Swiss businesses. It requires swift action to meet legal obligations and protect the company’s financial wellbeing. Article 725 of the Swiss Code of Obligations (CO) sets out the responsibilities of directors in managing situations such as underbalance, capital loss, and over-indebtedness. In this article, we define these terms, outline their legal and practical implications, and provide insights to help companies understand and address these situations effectively.

January 2, 2025 | David Merz

Corporate Taxes in Switzerland

Switzerland is well-known for its efficient and business-friendly tax system. This has made it an attractive destination for multinational corporations, small businesses, and entrepreneurs alike. This article provides a comprehensive overview of corporate taxes in Switzerland, covering the key types of taxes businesses encounter. We will also explain how these taxes are calculated, who they apply to, and what can be deducted from taxable income, as well as provide insight into the most tax-friendly cantons in Switzerland and some of the attractive tax incentives which are available to Swiss businesses.

November 25, 2024 | David Merz

Overview of Social Insurance in Switzerland

Switzerland's social insurance system is one of the most comprehensive and well-organized in the world. It largely succeeds in protecting individuals from the financial hardships associated with old age, illness, disability, and unemployment, thanks to its robust framework that is both highly structured and widely accessible. This article provides a detailed look at Switzerland’s social insurance system, including the fundamental “three-pillar” model for retirement provision and other key components and protection mechanisms.

October 1, 2024 | David Merz

Understanding the Participation Deduction in Switzerland

The participation deduction in Switzerland is a key tax benefit aimed at reducing the impact of multiple layers of taxation on income from significant corporate investments. This article will explore how the participation deduction works, its purpose in preventing double taxation, and the criteria for qualifying participations. Additionally, we'll illustrate the tax savings it can offer through practical examples and discuss its impact on corporate investment decisions in Switzerland, helping businesses fully utilize this important tax advantage.

August 8, 2024 | David Merz

Employment Contracts: A Guide for Swiss Employers

Employment contracts are fundamental for defining the employer-employee relationship in Switzerland. They outline the terms and conditions of employment for both parties, clarifying roles, responsibilities, and expectations. This guide will explore the various types of employment contracts available in Switzerland, their key elements, and the distinctions between employment and work contracts. Common questions on employment contracts are also dealt with, providing valuable insights for Swiss employers to navigate this essential aspect of their business.

August 7, 2024 | David Merz

Overview of the shareholders agreement - A guide for founders of stock corporations in Switzerland

The shareholders' agreement is an essential contract for the founding shareholders of a public limited company in Switzerland. It governs their rights, duties and responsibilities and provides a framework that goes beyond the limited mandatory provisions of the Swiss Code of Obligations. This agreement is particularly valuable for small public limited companies where personal relationships between shareholders play an important role. By clearly defining expectations and procedures, a shareholders' agreement helps to avoid disputes and ensure alignment with the company's goals and vision. This article provides the key to understanding the components and implications of a shareholders' agreement, which are critical to effective governance and long-term synergies between shareholders.

July 11, 2024 | David Merz

Tax Crash Course for Startups: Dates, Deadlines & Obligations

Getting to grips with the Swiss tax system can be a daunting task for newly established startups. With multiple layers of taxation at the federal, cantonal, and municipal levels, each with its own set of rules and regulations, it’s essential to have a clear understanding of your tax obligations. This comprehensive all-in-one guide aims to equip you with the tools you need to manage your taxes with confidence, highlighting key dates, deadlines and obligations. Whether you’re running your startup as a sole proprietorship or distinct corporate entity, staying compliant and optimizing your tax strategy can significantly impact your financial health and pave the way to long-term success.

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