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Archive for category ‘Taxes and Social Security’

Distinction Between Doing Business and Pursuing a Hobby

The distinction between doing business and pursuing a hobby is often not fully clear. It is crucial, however, because engagement in activities can obtain various classifications under tax law. According to the Federal Court, there are two elements that decide whether you do business or not: appropriateness of profit and pursuit of profit. Nonetheless, each […] more

The Future Should Bring Tax Breaks for Start-Ups

In June 2017 the National Assembly adopted a motion regarding tax breaks for start-ups. On 24 September 2018 it was also approved by the Council of States. Both the Federal Council and a minority in the Council of States unsuccessfully recommended dismissing the motion due to the fiscal discrimination of taxpayers. Now the Federal Council […] more

Claiming Input Tax When No Further Tax Liability Exists

The instrument of input tax deduction makes it possible for companies to deduct the value added tax that has already been paid by someone else. This can also be beneficial to unsuccessful companies. In one case, however, the Federal Administrative Court saw it differently. more

Taxation of Cryptocurrencies

Last year cryptocurrencies drew a lot of attention. They are penetrating more and more into our everyday life. Many people have looked into the subject, and also invested in various currencies. In terms of taxation, these currencies should be regarded as foreign currencies. more

Withholding Tax: What It Is and How It Works

In general, the Swiss taxation system is based on self-assessment. An exception from this rule is foreigners, who are usually subject to withholding tax. Here you can learn what this tax is really about, on whom it is imposed and how its levy is organised. more

New VAT Rates in Switzerland

The VAT rates in Switzerland are going to change: instead of going up, for the first time ever they are going down, even if probably only for a short period of time. The normal rate, which applies to almost all services, is now being reduced from 8% to 7.7%, the special hospitality rate to 3.7% (from 3.8% […] more

Changes in the VAT rates

Since 2011 a percentage of additional financing has been deducted from each VAT rate and assigned to the disability insurance fund. As at 31 December 2017 this temporary increase in VAT is going to be abolished. If the 2020 pension scheme reform were adopted, the tax rate would be directly increased once again. However, since […] more

VAT Revision – Part 2: Changes in Mail-Order Business and for Electronic Newspapers and Books

The VAT legislation in Switzerland is being totally revised. The first part of this revision, which has simplified the VAT system, has been in place since 2010. Now the second part is coming into force on 1 January 2018. To some extent, it is going to bring about some major changes, which also start-ups may […] more

VAT Revision – Part 1: Extension of Subjective Taxability

The VAT legislation in Switzerland is being totally revised. The first part of this revision, which has simplified the VAT system, has been in place since 2010. Now the second part is coming into force on 1 January 2018. To some extent, it is going to bring about some major changes, which also start-ups may […] more

International taxation – where must tax be paid?

International taxation affects companies that operate with several subsidiary branches in different countries. Tax will be liable in each of these countries. In order to avoid double taxation, Switzerland has concluded double taxation agreements with other countries. more