Swiss Tax Glossary

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• Mandatory social insurance for all Swiss residents (Art. 1 AHVG)
• Financed through payroll contributions (Art. 33 AHVG)
• Provides retirement and survivor benefits (Art. 14-32 AHVG)
• Contribution rate: 8.7% of salary (split between employee and employer)
• Minimum contribution: CHF 530 per year for non-employed persons
• Contributions are fully tax-deductible
• Voluntary contributions possible for self-employed persons

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• Direct federal tax on income (Art. 1 DBG)
• Progressive tax rates for individuals (Art. 36 DBG)
• Flat rate for corporations: 8.5% (Art. 68 DBG)
• Collected by cantonal tax authorities (Art. 2 DBG)
• Taxable income includes worldwide income for Swiss residents
• No federal wealth tax — wealth tax is levied only at cantonal and communal level
• Marginal rates for individuals reach a maximum of 11.5%

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• Mandatory occupational pension for employees earning above CHF 22,680 per year
• Financed through employer and employee contributions
• Provides retirement, disability, and survivor benefits
• Managed by pension funds (Pensionskassen)
• Portable between employers

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• Federal corporate tax rate: 8.5% (Art. 21 DBG)
• Cantonal and municipal taxes vary by location (Art. 2 DBG)
• Total effective rate typically 12-25% depending on canton
• Taxable income includes worldwide profits (Art. 3 DBG)
• Various deductions and exemptions available (Art. 58-60 DBG)
• Special rates for holding companies and mixed companies
• Tax consolidation possible for corporate groups

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• Can occur when income is taxed in source country and residence country
• Switzerland has tax treaties with 100+ countries to prevent double taxation
• Relief provided through tax credits or exemptions
• Important for international businesses and expatriates
• Documentation required to claim relief

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• Compensates for loss of earnings during military service
• Financed through payroll contributions
• Rate: 0.5% of salary
• Paid by employer and employee
• Provides income replacement during service

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• Direct federal tax on income and wealth
• Progressive tax rates
• Applies to all Swiss residents
• Collected by cantonal tax authorities
• Used to finance federal government operations

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• Smallest administrative unit in Switzerland
• Can levy municipal taxes
• Responsible for local services
• Tax rates vary by municipality
• Important for tax planning and compliance

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• Special tax treatment for holding companies
• Reduced tax rates on dividend income
• Must meet certain criteria
• Used for tax planning and investment structures
• Subject to specific regulations

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• Provides benefits for disabled persons
• Financed through payroll contributions
• Rate: 8.7% of salary (combined with AHV)
• Covers medical and rehabilitation costs
• Provides disability pensions

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• Required for all Swiss companies
• Must be prepared according to Swiss GAAP
• Audited by certified auditors
• Filed with commercial register
• Used for tax return preparation

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• One of 26 federal states in Switzerland
• Can levy cantonal taxes
• Tax rates vary significantly by canton
• Important for tax planning and business location
• Responsible for tax administration

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• Withheld from employee salaries
• Calculated based on tax tables
• Paid to tax authorities monthly
• Credited against annual tax liability
• Important for cash flow planning

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• Standard rate: 8.1%
• Reduced rate: 2.6% for essential goods
• Special rate: 3.8% for accommodation
• Registration required above CHF 100,000 turnover
• Monthly or quarterly returns required

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• Salary after all deductions
• Includes tax, social insurance, and other deductions
• Amount received by employee
• Important for budgeting and financial planning
• Varies by canton and municipality

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• Person with local citizenship rights
• May have different tax treatment
• Important for tax residency determination
• Affects tax rates and deductions
• Historical concept in Swiss law

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• Manages BVG occupational pension benefits
• Can be company-specific or multi-employer
• Invests pension contributions
• Pays retirement and disability benefits
• Subject to federal supervision

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• Deducted monthly from gross salary by the employer
• Applies to foreign workers without a C permit and to cross-border commuters
• Rates vary by canton, income, marital status, and number of children
• Residents earning above CHF 120,000 must additionally file an ordinary tax return
• Adjustments and corrections can be requested by March 31 of the following year

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• Accounting provision for future tax payments
• Required for certain tax situations
• Affects financial statements
• Important for tax planning
• Subject to specific rules

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• Annual tax return form (Art. 75 DBG)
• Due by March 31 of following year (Art. 75 DBG)
• Reports income, deductions, and taxes (Art. 3-13 DBG)
• Can be filed electronically (Art. 75a DBG)
• Penalties for late filing: CHF 100-1,000 (Art. 76 DBG)
• Interest on overdue taxes: 5% per year (Art. 77 DBG)
• Extension possible with valid reasons

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• Pricing of intercompany transactions
• Must be at arm's length
• Subject to documentation requirements
• Important for international businesses
• Can trigger tax audits

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• Alternative term for VAT
• Same as Mehrwertsteuer
• Tax on goods and services
• Registration and return requirements
• Important for business compliance

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• Withheld at source on dividends, bank interest, and lottery winnings
• Rate: 35%
• Fully refundable for Swiss residents who correctly declare the income
• Foreign residents may reclaim part or all of it under tax treaties
• Not the same as Quellensteuer, which is the tax at source on employment income

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• Tax domicile or residence
• Determines tax liability
• Based on physical presence and ties
• Important for tax planning
• Affects tax rates and deductions

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• Tax on luxury yachts and boats
• Varies by canton
• Based on value or length
• Important for luxury goods
• Subject to specific rules

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• Withholding tax on interest income
• Rate: 35% for Swiss residents
• Can be reduced through tax treaties
• Credited against annual tax liability
• Important for investment income

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• Federal law governing direct federal taxation (SR 642.11)
• Regulates income and wealth taxation (Art. 1 DBG)
• Defines taxable persons and entities (Art. 2 DBG)
• Establishes tax rates and brackets (Art. 14-21 DBG)
• Sets filing deadlines and penalties (Art. 75-77 DBG)
• Provides for tax treaties and international cooperation
• Updated regularly by Federal Council

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• Unlimited tax liability for Swiss residents (Art. 2 DBG)
• Limited tax liability for non-residents (Art. 2 DBG)
• Based on domicile, residence, or economic ties
• Applies to individuals and legal entities
• Worldwide income subject to Swiss taxation
• Tax liability ends with emigration (Art. 2a DBG)
• Special rules for cross-border workers

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• Professional expenses up to CHF 2,000 (Art. 33 DBG)
• Social security contributions (Art. 33 DBG)
• Insurance premiums for health and accident (Art. 33 DBG)
• Interest on loans for business purposes (Art. 33 DBG)
• Donations to charitable organizations (Art. 33 DBG)
• Childcare expenses up to CHF 10,000 per child
• Special deductions for self-employed persons

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• Late filing penalty: CHF 100-1,000 (Art. 76 DBG)
• Interest on overdue taxes: 5% per year (Art. 77 DBG)
• Tax evasion: up to 3 years imprisonment (Art. 175 StGB)
• Negligent tax fraud: fine up to CHF 100,000
• Intentional tax fraud: fine up to CHF 1,000,000
• Voluntary disclosure reduces penalties significantly
• Statute of limitations: 5 years for tax fraud

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• All persons gainfully employed in Switzerland (Art. 1 AHVG)
• Persons with Swiss residence (Art. 1 AHVG)
• Self-employed persons (Art. 1 AHVG)
• Contribution period: from age 20 to retirement age
• Minimum contribution for non-employed persons: CHF 530 per year
• For employees, contributions are due on the entire salary without a ceiling
• Voluntary contributions possible for gaps in coverage

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• Minimum full pension: CHF 1,260 per month
• Maximum full pension: CHF 2,520 per month
• Reference age: 65 for men and women (being phased in for women under the AHV 21 reform)
• Early withdrawal possible from age 63 (age 62 for women of the transitional generation)
• Deferring the pension up to age 70 increases it
• Pension calculated based on average income and contribution years

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• Widow/widower pension: 60% of deceased spouse's pension (Art. 19 AHVG)
• Orphan pension: 20% of deceased parent's pension (Art. 20 AHVG)
• Parent pension: 20% of deceased child's pension (Art. 21 AHVG)
• Minimum survivor pension: CHF 717 per month (Art. 22 AHVG)
• Maximum survivor pension: CHF 1,434 per month (Art. 22 AHVG)
• Survivor pension paid for life or until remarriage (Art. 23 AHVG)
• Orphan pension paid until age 18 or 25 if studying (Art. 24 AHVG)

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• Current AHV rate: 8.7% of gross salary (10.6% including IV and EO)
• Split equally between employee and employer
• Self-employed pay up to 10% AHV/IV/EO on a sliding scale
• No upper salary limit — contributions are due on the entire salary
• Minimum contribution for non-employed persons: CHF 530 per year

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• Minimum contribution: CHF 530 per year
• Applies to non-employed persons and persons with low income
• Ensures basic AHV coverage (Art. 33a AHVG)
• Paid by self-employed persons (Art. 33a AHVG)
• Paid by persons with gaps in employment (Art. 33a AHVG)
• Voluntary contribution to maintain coverage (Art. 33a AHVG)
• Tax-deductible contribution (Art. 33a AHVG)

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• For employees there is NO salary ceiling — AHV contributions are due on the full salary
• Non-employed persons pay between CHF 530 and CHF 26,500 per year depending on wealth and pension income
• AHV contribution rate for employees: 8.7% of salary, split equally with the employer
• Contributions are tax-deductible

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• Missing contributions can be paid retroactively for up to 5 years
• Minimum contribution: CHF 530 per year
• Closing gaps improves the pension calculation
• Contributions are tax-deductible
• Swiss citizens and EU/EFTA nationals living abroad may join the voluntary AHV under certain conditions

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• Contribution year: January 1 to December 31
• Contributions calculated annually
• Minimum contribution for non-employed persons: CHF 530 per year
• AHV contribution rate: 8.7% of salary, with no upper salary limit
• Split equally between employee and employer
• Tax-deductible in the contribution year

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• All employed persons in Switzerland (Art. 1 AHVG)
• All persons with Swiss residence (Art. 1 AHVG)
• Self-employed persons (Art. 1 AHVG)
• Persons with gaps in employment (Art. 1 AHVG)
• Persons with low income (Art. 1 AHVG)
• Persons with voluntary coverage (Art. 1 AHVG)
• Persons with foreign coverage (Art. 1 AHVG)

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• Progressive tax rates for individuals (Art. 14 DBG)
• Tax rates range from 0.77% to 11.5% (Art. 14 DBG)
• Tax brackets adjusted annually (Art. 14 DBG)
• Flat rate for corporations: 8.5% (Art. 21 DBG)
• Tax rates vary by income level (Art. 14 DBG)
• Minimum tax rate: 0.77% (Art. 14 DBG)
• Maximum tax rate: 11.5% (Art. 14 DBG)

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• Standard rate: 8.1% (Art. 25 MWSTG)
• Reduced rate: 2.6% for essential goods (Art. 25 MWSTG)
• Special rate: 3.8% for accommodation (Art. 25 MWSTG)
• Current rates in force since 1 January 2024
• Rates apply to all taxable supplies (Art. 25 MWSTG)
• Rates published in the classified compilation (SR 641.20)
• Rate changes take effect from January 1

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• Unlimited tax liability for Swiss residents (Art. 2 DBG)
• Limited tax liability for non-residents (Art. 2 DBG)
• Based on domicile or residence (Art. 2 DBG)
• Applies to individuals and legal entities (Art. 2 DBG)
• Worldwide income subject to taxation (Art. 2 DBG)
• Tax liability ends with emigration (Art. 2a DBG)
• Special rules for cross-border workers (Art. 2 DBG)

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• Worldwide income for residents (Art. 3 DBG)
• Swiss-source income for non-residents (Art. 3 DBG)
• Employment income (Art. 4 DBG)
• Business income (Art. 5 DBG)
• Investment income (Art. 6 DBG)
• Capital gains (Art. 7 DBG)
• Various deductions allowed (Art. 8-13 DBG)

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• Professional expenses up to CHF 2,000 (Art. 8 DBG)
• Social security contributions (Art. 9 DBG)
• Insurance premiums (Art. 10 DBG)
• Interest on loans (Art. 11 DBG)
• Charitable donations (Art. 12 DBG)
• Childcare expenses (Art. 13 DBG)
• Special deductions for self-employed (Art. 8-13 DBG)

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• Annual tax return required (Art. 75 DBG)
• Due by March 31 of following year (Art. 75 DBG)
• Electronic filing possible (Art. 75a DBG)
• Penalties for late filing (Art. 76 DBG)
• Interest on overdue taxes (Art. 77 DBG)
• Extension possible with valid reasons (Art. 75 DBG)
• Special rules for certain taxpayers (Art. 75 DBG)

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• Late filing penalty: CHF 100-1,000 (Art. 76 DBG)
• Interest on overdue taxes: 5% per year (Art. 77 DBG)
• Tax evasion: up to 3 years imprisonment (Art. 175 StGB)
• Negligent tax fraud: fine up to CHF 100,000
• Intentional tax fraud: fine up to CHF 1,000,000
• Voluntary disclosure reduces penalties significantly
• Statute of limitations: 5 years for tax fraud

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• Certain income types exempt (Art. 14 DBG)
• Charitable organizations exempt (Art. 15 DBG)
• Religious organizations exempt (Art. 16 DBG)
• Educational institutions exempt (Art. 17 DBG)
• Cultural organizations exempt (Art. 18 DBG)
• Sports organizations exempt (Art. 19 DBG)
• Special exemptions for certain activities (Art. 20-21 DBG)

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• Reductions for certain circumstances (Art. 22 DBG)
• Reductions for families (Art. 23 DBG)
• Reductions for elderly (Art. 24 DBG)
• Reductions for disabled (Art. 25 DBG)
• Reductions for students (Art. 26 DBG)
• Reductions for military service (Art. 27 DBG)
• Special reductions for certain groups (Art. 28-30 DBG)

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• Tax collection by cantonal authorities (Art. 31 DBG)
• Collection procedures (Art. 32 DBG)
• Payment deadlines (Art. 33 DBG)
• Interest on overdue payments (Art. 34 DBG)
• Penalties for non-payment (Art. 35 DBG)
• Collection enforcement (Art. 36 DBG)
• Special collection procedures (Art. 37-40 DBG)

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