The founding of a startup is typically a turbulent process. An existing idea has to be transformed into a business model, the team has to be assembled and investors have to be found for the financing. The focus in this phase is on...
Swiss Government enhances the key figures for a paying agent tax
On 27 September 2019 (German only), the Swiss Government completed its key figures for the reform of the Swiss withholding tax and thus took a stand on open issues....
Design your sponsoring activities in the interest of both parties and keep an eye on the value added tax (VAT).
FAC confirms Data Protection Commissioner's recommendation
A recent decision (A-5715/2018) by the Swiss Federal Administrative Court (FAC) strengthens the right of third parties in proceedings concerning administrative assistance...
The founding of a startup is typically a turbulent process. An existing idea has to be transformed into a business model, the team has to be assembled and investors have to be found for the financing. The focus in this phase is on driving the project forward and the practical implementation of the business model - less on contracts and tax optimization. However, strong contracts and forward-looking tax planning are a must for every startup in the medium and long term - especially if it is successful! The VISCHER Startup Desks's three-part series Focus on Taxes is dedicated to the tax aspects that have to be considered for a successful startup from the point of view of investors and founders, employees and the company:
Swiss Government approves the objectives and key figures for a paying agent tax
Following the National Council's Commission for Economic Affairs and Taxes (WAK-N), the Swiss Government has also published its key figures for a reform of the Swiss withholding tax ( available only in German). The key figures are largely identical, but there are differences in detail. The Swiss Government also plans to combine an exemption of foreign investors with an improvement of the safeguarding purpose for domestic taxpayers.
Subcommission publishes key figures of a paying agent interest tax
The sub-commission appointed in November 2018 (available only in German) by the Commission for Economic Affairs and Taxes of the National Council (WAK-N) has published key figures for a reform of the Swiss withholding tax on interest. Even though the entire commission agreed on the publication (available only in German) of the key figures, it is not binding for her.
Report of the expert group set up by the FTA released
The seemingly never-ending work on a reform of the Swiss withholding tax has reached another intermediate stage. Following the withdrawal of the federal popular initiative "Yes to the protection of privacy" in January 2018, the expert group appointed by the Federal Department of Finance intensified its work and completed it in December 2018. Following the Federal Council's information session, the expert group's report* was released on 8 March.
Cross-border assignment of employees to affiliate companies is a useful and common tool for international groups. However, to avoid unpleasant surprises, it is essential to structure such transfers correctly and to seek legal clarification at an early stage, not only from a Swiss immigration perspective, but also considering social security and taxes.
On September 17, 2018, the Swiss parliament approved the corporate tax reform (Federal Act on Tax Reform and AHV financing (TRAF). On one hand TRAF will abolish preferential cantonal tax regimes, such as holding or mixed companies, but will on the other hand implement measures to preserve Switzerland's attractiveness as a business location. In addition to such measures the cantons plan to drastically lower their ordinary tax rates on profit and capital (applicable for all companies). Overall, these developments will lead to a more favorable tax regime for most companies in Switzerland. Especially innovative companies will be promoted.