Insights

The right to deduct import tax is subject to certain legal requirements. In addition, the company must be able to document a claimed import tax deduction. However, despite the principle of free assessment of evidence, not every document related to an import is suitable for proving the claim to an import tax deduction in a legally adequate manner.

The Grant Thornton offices in Schaan, Liechtenstein, have been expanded with a new building directly next to the existing building. In recent years, Grant Thornton Switzerland/Liechtenstein has experienced strong growth. This growth means that we need more space. “With this expansion, we now have the additional space we need and, at the same time, we have created the perfect locations for all of our departments,” explains Rainer Marxer, partner at Grant Thornton. The aim was not only to create more space, but to ensure that it was adapted and optimised to meet modern requirements. At the end of 2021, the project was completed, and the employees in Schaan moved into their new offices on schedule. In Wirtschaftregional, Hanspeter Schreiber, the architect of the new building, and Rainer Marxer discussed the expansion and answered the most important questions the newspaper had about the project. Read more ...

If the employer provides its employee with a business vehicle, which the employee may also use privately, this is deemed to be a supply that is provided by the employer. This supply is subject to the standard VAT rate and must be declared accordingly in the VAT return of the employer.

One way for a company to improve long-term employee retention and to attract new employees is through an employee share scheme. When setting up these schemes, however, caution is required as there are several tax pitfalls. The focus when companies choose these schemes is often on including employees in decision-making and giving them information, with less attention paid to questions about tax. However, the level of tax burden can significantly influence how attractive an employee share scheme is for both the employer and employee. In their article, Michael Rupp and Christian Reichert explain the key points for both sides and use an example to show how the tax burden is calculated in Liechtenstein.

A lot has changed in the working world of a financial auditor due to COVID-19. Meetings via videoconference, travel restrictions, working from home and other remote structures and processes had to be implemented quickly due to the pandemic. Small companies in particular – both auditors and clients – have made significant upgrades to their IT systems during the past 18 months. In addition to working conditions, financial auditors also face additional challenges during the pandemic. Assessing the going concern premise based on lost revenues, liquidity shortages, supply chain issues and production stops during lockdowns is a very challenging task, for example. In her article, Dr Shqiponja Isufi explains how companies can grasp the opportunities presented by the COVID-19 crisis and why a career as a financial auditor is set to become even more attractive for the younger generation.

In a public vote February 13, 2022 a change of current stamp tax law was disapproved with the result that the 1% stamp tax as levied on the issuance of equity of Swiss corporate entities stays in place. Other stamp duties were not being voted on, such as the securities transfer tax, a transaction tax on the sale or purchase of certain securities, as well as the insurance stamp tax, both of which will remain in existence as well.

Mid January 2022 the Swiss Federal Council decided on the basic implementation procedures that will ensure a minimum tax rate of 15% for Swiss based companies that are part of a large multinational enterprise. In essence, first a temporary tax ordinance will be issued, followed by a regular legislation process. The approach with a temporary tax ordinance is seemed to be necessary as legislative processes may take considerable time that stands in contrast with the ambitious timetable as set by OECD on the entry into force of Pillar Two. Even though a temporary tax ordinance is the anticipated way of implementation, an amendment of Switzerland’s constitution, and as such a public vote, will be necessary. The public vote, under the current timetable, is set for June 2023. Current goal is an implementation of the minimum tax for in-scope companies by January 1, 2024.

The number of start-ups continues to rise. When it comes to innovation, Switzerland is a world leader thanks to its renowned universities. The entire innovation process, from the initial idea through to the launch of a marketable product or service, is often a rocky road on which hurdles from the most diverse subject areas have to be overcome. With Grant Thornton as your start-up partner, you benefit from our valuable experience and expertise from day one.

For many companies in our region, having enough in-house IT experts to provide sufficient protection against cyberattacks is a huge challenge. In this article, Christopher Oehri explains why having the right IT security partner is so important, and how Grant Thornton can help you find the right solution for your company.

New financial market regulation, especially in regard to the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA), has been in effect in Switzerland since the beginning of 2020. It affects investment and asset advisors, asset managers, managers of collective assets and everyone who is involved in financial services as well as offering and marketing financial instruments – including fund sales. After roughly one and a half years and numerous difficulties associated with the coronavirus pandemic, the time has finally come to take stock of the situation among affected financial service providers of every kind. In this June 2021 edition of the B2B panel, Veronika Britt, Senior Manager at Grant Thornton Switzerland/Liechtenstein, explains what to look out for particularly when it comes to financial market regulation and how Grant Thornton can support your business:

The Liechtenstein tax code has been amended so that income and capital gains from subsidiaries with passive income that are resident in low-tax countries are no longer exempt from corporate income tax. In this article, Nicolai Fischli and Martina Benedetter have a look at the implications of the switchover rules for certain dividends and capital gains under Liechtenstein corporate income tax law. Find out more here:

VAT is first and foremost a tax and contributes to the financing of government tasks. On closer inspection, however, certain procedures and precautions in the field of VAT have a positive effect on the available liquidity by reducing unnecessary liquidity commitment from a business management point of view. The notification procedure for import tax is used to illustrate the effect of certain VAT arrangements.

In 2018, the Swiss Parliament passed an amendment to the Gender Equality Act (GEA) that requires companies with 100 or more employees to conduct a pay equity analysis. The revised GEA went into effect on 1 July 2020. This pay equity analysis must be carried out by the end of June 2021 at the latest and reviewed by an independent body within a year.

The Covid-19 pandemic still has a firm grip on the world. Vaccinations are now supposed to protect people from the virus and enable them to return to "normal life" as soon as possible. From a labor law perspective, this raises various questions, such as the subject of mandatory vaccination for company employees or how to deal with the granting of special rights for vaccinated people. As an employer, what should you watch out for in relation to vaccination against the corona virus?

The Financial Institutions Act (FinIA) and the Financial Services Act (FinSa) entered into force on 1 January 2020. These laws are specified by specific ordinances published by the Federal Council on 6 November 2019. Various transitional periods are provided for the implementation of the new requirements for asset managers. What do you as an asset manager need to bear in mind?

Cross-border e-commerce: Tax-efficient and customer-friendly delivery process to Switzerland A VAT guide to cross-border e-commerce for foreign web shops