Insights

The novel coronavirus (COVID-19) pandemic is spreading around the globe rapidly. The virus has taken its toll on not just human life, but businesses and financial markets too, the extent of which is currently indeterminate. Entities need to carefully consider the accounting implications of this situation.

Durch die zunehmende Ausbreitung von Covid-19 rückt der Schutz, die Gesundheit und die Sicherheit der Mitarbeitenden stärker in den unternehmerischen Fokus denn je. Um die Belegschaft ausreichend zu schützen und den Empfehlungen des Bundes nachzukommen, sind viele Unternehmen dazu übergegangen ihr Arbeitsmodell umzustellen – meist mit ausgesprochen geringer Vorbereitungszeit. Die Arbeit im «Homeoce» bietet sich unter den Umständen der Covid-19-Krise in vielen Fällen als gute Übergangslösung an – birgt für viele Unternehmen aber auch eine Vielzahl neuartiger Risiken, welche nicht ausser Acht gelassen

Located at the heart of Europe and a member of the European Economic Area (EEA), Liechtenstein serves as a hub for multinational corporations in many industries. Thanks to its long-standing history and competitive legislation, Liechtenstein is home to many banks, insurance undertakings, wealth managers and family offices. Especially in the areas of asset protection and wealth management, Liechtenstein has been able to maintain a competitive edge.

Due to a number of tax law amendments, significant amendments to the Liechtenstein tax law came into force on 1 January 2019. With reference to the 2019 tax return, have therefore compiled a checklist below with an overview of the most important changes and their effects. Companies subject to tax in Liechtenstein are advised to consider the implications of these changes in their preparations for their tax return, and to take them into account when preparing their annual financial statements.

With the rising impact of COVID-19 being seen worldwide, all industries will face significant disruption to their supply chain, workforce and cashflow. The right response will depend on the specific circumstances you and your business face. However, when experiencing significant stress or distress, we recommend you focus everything you do around the management of cash.

The Swiss federal council announced to waive late interest on overdue tax payments for corporate tax payers. The following tax are covered: Federal income tax, Value Added Tax/ VAT, customs, special consumption taxes (mineral oil tax, heavy vehicle tax, automobile tax, tobacco tax, etc.) that become due between March 1, 2020 and December 31, 2020.

We also support you in the corona crisis - Organizational information In the context of the COVID 19 pandemic declared by the World Health Organization and the information provided by the Swiss Federal Council for the protection of the population, we would like to keep you informed about the response of Grant Thornton Switzerland/Liechtenstein to the public health situation.

The spread of the Coronavirus is impacting businesses around the world. Entities need to carefully consider the accounting implications of this situation. This IFRS Alert considers the impact of the Coronavirus on 31 December 2019 year ends.

Due to the progressive spread of the coronavirus, all schools in Switzerland are now closed. Furthermore, the Federal Council yesterday announced further drastic measures such as the closure of all restaurants, bars, shops and leisure facilities (fitness centres, swimming pools, etc.). In order to support the economy in these difficult times, the Confederation is making up to CHF 10 billion available, among other things, for short-time working compensation. An overview of the most important questions concerning official measures and compensation for short-time work can be found in this overview.

The coronavirus is continuing to spread in Switzerland and Liechtenstein, causing increasing uncertainty among employees and employers and leading to questions such as: Are employees allowed to work from home of their own volition? How about business trips to high-risk areas? The following provides a brief overview of the most important consequences for employment law the virus may entail.

Grant Thornton Switzerland/Liechtenstein is sponsoring the 11th Annual Meeting of the Global Alliance for Banking on Values (GABV) as an official partner. The theme of this year’s event is “Every degree matters – mobilising finance for people and planet”, and participants will have the opportunity to share ideas and develop new solutions for the finance sector to tackle the issue of climate change. The 11th GABV Annual Meeting will run from 24 to 27 February 2020. Hosted at the Bellevue Palace hotel in Bern, it will bring together more than 150 CEOs, board members and senior managers from over 60 financial institutes from around the world.

On 14 February 2020, an article on integrated tax planning with commercial real estate in the economic region was published: The acquisition or expansion of a commercial property should be well thought through in order to optimise the tax structure. This is especially important in view of the often very high investment sums and financial effects on the company and its owner. Careful tax planning requires that not only the effects on the company are examined, but that a comprehensive overall view is taken. There are various tax levers that have an influence on the taxation of the company and its owner. These are in particular the financing (through equity or borrowed capital), the acquisition by the company itself or the owner as well as the amount of interest or rent. Translated with www.DeepL.com/Translator (free version)

On February 6, an interview with Erich Bucher, CEO of Grant Thornton Switzerland/Liechtenstein, was published in the "Handelszeitung". In the interview he refers to Grant Thornton's growth strategy in Switzerland and Liechtenstein and the current positioning in the competitive environment of auditing and consulting firms. Furthermore, he explains how the requirements profile for auditors is changing and will continue to change as a result of digital developments and new circumstances.

For trustees, the processes and procedures applying to AEOI and FATCA audits vary significantly from those affecting banks and insurance institutions. Although two different systems are involved, a legal entity is often classified according to the same criteria. A divergence between AEOI and FATCA classification should be subject to close scrutiny. For example, under FATCA a foundation is always to be classified as a financial institution (FFI) if one of its bodies is itself an FFI. The additional AEOI requirement, whereby a body must manage the assets at its own discretion, does not apply under FATCA.

The Swiss market is attractive for foreign e-commerce retailers, as it attracts high turnover. Products typically offered online to consumers (B2C) are textiles, shoes, cosmetics and beauty, food and household appliances, home electronics, furniture, books and much more. Online trading also plays a certain role in B2B transactions. The products traded depend on the respective industry.

On 1 January 2020, the Financial Institutions Act (FINIG) and the Financial Services Act (FIDLEG) will enter into force. They are specified by ordinances, published by the Federal Council on 6 November 2019. For the implementation of the new requirements that will apply to asset managers, there are various transition periods. We are happy to support you efficiently to implement the new regulatory requirements.