Taxes, including VAT
Gaapex supports and advises you on any topic relating to corporate tax, from VAT to direct taxation. We also act as VAT representative for foreign companies.
- In Switzerland, the taxation of legal entities is based on their statutory financial statements (authoritative principle).
- Companies are taxed on their profit after tax (the tax itself is deductible).
- The tax on profit is divided into cantonal and municipal tax and federal direct tax.
- The federal direct tax rate is 8.5% after taxes, while the cantonal and municipal tax rates vary depending on the canton and municipality.
- Preparation of your company’s tax declaration on the basis of the annual financial statements approved by the AGM.
- Identification of tax risks and proposal of suitable solutions.
Value-added tax (VAT)
- Companies with global sales revenue of over CHF 100,000 p.a. have to pay VAT from the first franc of revenue generated on Swiss territory.
- This applies to both Swiss and foreign companies.
- VAT is obligatory from the year following the year in which revenue reaches the CHF 100,000 threshold.
- Switzerland has three VAT rates: a standard rate (7.7%), a reduced rate (2.5%), which basically applies to food, and a special rate (3.7%), which applies to hotels.
- Submission of your company’s quarterly or semi-annual VAT declaration.
- Annual revenue reconciliation and amended VAT declaration.
- Swiss VAT representative for foreign companies.
In addition to direct taxes and VAT, the following taxes may be of relevance for your company:
- Withholding tax: levied on dividends and deemed dividend distributions.
- Stamp duty: levied on shareholder contributions and capital increases.
- Capital tax: levied on the equity of legal entities and “hidden equity”.