Insights

For the tax assessment of advances and loans in Swiss francs and in foreign currencies, the Swiss Federal Tax Administration (FTA) publishes the recognised interest rates annually. The interest rates were massively increased in 2023 compared to previous years.

Changes in commercial law effective January 1, 2023, result in various tax planning opportunities and increased flexibility. This is especially true for foreign-controlled Swiss companies.

Increase in maximum pillar 3a deductions in the 2023 tax year.

Based on a people’s decision of 25 September 2022 the Swiss VAT rates are going to be increased. The increase of the VAT rates is planned to become effective as from 1 January 2024.

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.