Taxes - Duties - VAT | Ora Fiduciaire

Management of corporate taxes and duties

Running a business in Switzerland involves careful tax monitoring to meet obligations and take advantage of optimization opportunities. It is therefore essential to understand Income and Capital Tax, VAT and Withholding Tax.

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Taxation in Switzerland

In Switzerland, there are 3 levels of taxation:

Federal

Cantonal

Communal

Types of taxes in Switzerland

Indirect taxes (30% of tax revenue):

Does not take into account standard of living or ability to pay. Fixed rate.

Direct taxes (70% of tax revenue):

Takes into account standard of living or ability to pay. Progressive rate.

The different taxes/duties of professionals

VAT (quarterly or half-yearly): indirect tax

Profit and capital tax (annual): direct tax

Withholding tax : indirect tax

Municipal professional tax (bi-annual): direct tax - will no longer exist from 2024.

VAT: Value Added Tax

2 methods mainly
- Effective method (in real terms)
- Net tax debt method (turnover multiplied by a rate set by the AFC according to the type of activity)

2 types of services
- Agreed services (tax payable upon invoicing)
- Benefits received (tax payable upon receipt/disbursement)

Rate 2024
- Normal rate: 8.1%
- Reduced rate: 2.6%
- Special rate for accommodation: 3.8%

Tax on profits and capital

2 taxable materials
- Profit (Income – Expenses)
- Capital (Balance sheet equity - adjusted)

3 levels of taxation

- IFD Direct Federal Tax
- ICC Cantonal and municipal tax

Note
Losses are carried forward for 7 years

Withholding tax

3 rates

- 35% on investment income (dividends and interest)
- 15% on life annuities
- 8% for insurance services

Reimbursement (general Swiss cases)
- Professionals: On request to the AFC.
- Individuals: When filing the annual tax return