Corporate tax and VAT

CORPORATE INCOME TAX

Gaapex can prepare your corporate income tax returns and be the point of contact for any communication with tax authorities. We can also assist you with your tax setup and identify areas of tax savings and tax exposure.

Thanks to our online platform, you will be updated in real time as to the status of your tax returns or any procedure in progress with the tax authorities. Also, all paperwork that we prepare and submit are available to you in a secured area which guarantees access to your tax records at any time.

VALUE ADDED TAX (VAT)

VAT can trigger significant financial risks for companies. It is therefore critical to have it properly monitored and reviewed. Gaapex can prepare and submit quarterly and yearly returns on your behalf and complete the annual reconciliation between your VAT returns and your financial statements. All the work carried out by Gaapex is available on our online platform which is accessible to you at all time.

In addition to the preparation of tax returns, we can assist you with the following:

  • Registration with Swiss VAT authorities
  • Choice of an appropriate VAT regime
  • Identification of the appropriate VAT treatment of a transaction
  • VAT impacts of international transactions
  • VAT representation in Switzerland for foreign companies

Thanks to our implication and understanding of your business, we can assist you with the determination of the most appropriate VAT regime as well as the qualification of your transactions for VAT purposes. In certain circumstances, a VAT registration might be required in foreign jurisdictions, especially if you operate in EU countries. We can help you identify potential exposure and take appropriate action to address the underlying risks.

We are available in order to review your business model and offer customized solutions meeting your needs. Please do not hesitate to contact us.

OTHER TAXES

In addition to corporate income tax and VAT, Switzerland collects taxes such as stamp duty, withholding tax and capital tax. Although the impact of these other taxes is usually low, specific transactions your company might be engaged in could qualify as being taxable.

Gaapex can monitor and identify transactions triggering a tax exposure and take appropriate action ahead of the issuance of your statutory financial statements and tax return in order to mitigate the exposure.

Stamp duty is due on the issuance and transactions involving shares, bonds and other types of financial instruments. When meeting certain criteria, an entity can be subject to stamp duty on any transaction (purchase and sell) of taxable instruments. It is therefore critical to monitor these criteria and take proper action should your company qualify.

Withholding tax is retained on finance revenue, more specifically on dividends and interests. Should a dividend be decided, a company is required to retain withholding tax and pay it to the tax authorities on behalf of the beneficiary. In certain circumstances the withholding tax can be either refunded or avoided by submitting appropriate documentation.
Withholding tax can also be paid on deemed dividends in case a company is not dealing at arm’s length with its shareholders and other related parties. In order to avoid that exposure, relationships with shareholders and affiliates should be closely monitored.

Capital tax varies from one canton to the other but is usually due on share capital, additional paid in capital and retained earnings. As it is also typically charged in case of thin capitalization, the equity ratio needs to be properly monitored.