Swiss tax newsletter: latest updates in tax, company and employment law

Swiss withholding tax is a federal tax that also applies to deemed dividends, such as interest paid on intragroup loans at a rate the tax authorities consider excessive. It works on the principle of self-assessment: the company must declare and pay the tax to the Swiss Federal Tax Administration (SFTA) on its own initiative.

ETIAS (European Travel Information and Authorisation System) is an online travel authorisation for visa-free third-country nationals, such as US, Canadian and Australian citizens, staying in Switzerland or the Schengen area for up to 90 days within 180 days. It costs around €20, is valid for up to three years and is expected to be strictly enforced from autumn 2027.

Individual taxation ends the joint taxation of married couples, with each spouse taxed separately. Approved by Swiss voters, it must be implemented by 2032 at the latest. One of its main objectives is to eliminate the tax penalty on second incomes, making it more attractive to take up or increase work, particularly part-time.

The articles of association regulate a large part of a company's internal organisation and are usually published on the cantonal commercial register websites. A shareholders' agreement is a confidential agreement between shareholders that covers what the articles cannot fully provide for, such as share transfers, minority shareholder rights and avoiding deadlock.

Pillar 2 is the OECD framework that ensures large multinational groups, with consolidated revenues above €750 million, are taxed at an effective rate of at least 15% wherever they operate. Switzerland has applied the Qualified Domestic Minimum Top-up Tax (QDMTT) since 1 January 2024 and the Income Inclusion Rule (IIR) since 1 January 2025.

VAT registration becomes mandatory once turnover from taxable supplies reaches CHF 100,000 a year. Below this threshold, voluntary VAT registration allows a business to deduct input tax. Businesses that are not registered must still pay acquisition tax when they buy services worth CHF 10,000 or more a year from foreign providers.