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.
Direct taxes
In brief…
- 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.
Our services
- 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)
In brief…
- 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.
Our services
- Submission of your company’s quarterly or semi-annual VAT declaration.
- Annual revenue reconciliation and amended VAT declaration.
- Swiss VAT representative for foreign companies.
Other taxes
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”.
