Tax and Legal
September 16, 2025 |
David Merz
Many entrepreneurs begin their journey with a sole proprietorship. It's simple to set up, requires no minimum capital, and offers full control. But as the business grows, so do the legal, financial, and reputational demands. At some point, converting your company into another legal form – such as a GmbH or an AG – becomes a logical next step and offers numerous advantages.
This article explains when and why converting your sole proprietorship makes sense, the legal mechanisms available for doing so, and how to complete the process correctly while avoiding unexpected tax consequences.
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September 10, 2025 |
Nexova AG
As a rule, all entrepreneurs in Switzerland are subject to value added tax (VAT) if they meet the legal requirements. This means: Depending on the tax rate (8.1%, 3.8% or 2.6%), they add VAT to the invoice amount.
However, this obligation does not apply to all deliveries or services! For you as an entrepreneur, it is essential to know what is included and what is not. In this article, we give you an insight into this topic. Among other things, we explain what VAT actually is, who is subject to it and what billing models exist.
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September 3, 2025 |
David Merz
Withholding tax (Verrechnungssteuer) is a distinctive feature of Switzerland’s fiscal system. It is a federal tax that is primarily designed to reduce tax evasion on capital income. Set at a standard flat rate of 35% (with some exceptions), it applies to dividends, interest, lottery winnings, and certain insurance benefits. It is withheld directly at the source and is usually refunded to the taxpayer if they correctly declare their investment income.
In this article, we’ll break down how Swiss withholding tax works, which income it affects, how you can reclaim it, and what you should watch out for—whether you're a Swiss resident, an international investor, or a company operating in Switzerland.
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June 28, 2025 |
David Merz
The stock corporation (AG) and limited liability company (GmbH) are two of the most popular legal forms for businesses in Switzerland. One of their main features is that they are both designed to provide limited liability, meaning shareholders’ personal assets are protected from the company’s debts and obligations. However, the important question is, just how foolproof is this protection in reality?
This article explains how limited liability works in Swiss AGs and GmbHs, when it breaks down in practice, and under what conditions directors and managing shareholders can be held personally liable. It also covers the consequences of liability, relevant time limits, common risk scenarios, and strategies to help minimize personal exposure.
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June 10, 2025 |
Nexova AG
In this age of information, the use of personal data is at the core of most business models. With digital transformation accelerating, the way companies collect, process, store, and transfer data has evolved rapidly. To keep up with these changes, Switzerland introduced a completely revised Federal Act on Data Protection (nFADP or nDSG), which came into force on 1 September 2023.
This new legal framework modernizes Swiss data protection law, aligns it more closely with international standards such as the EU General Data Protection Regulation (GDPR), and introduces several new rights for individuals (data subjects) and obligations for companies. This article provides a detailed overview of the key elements of the revised law, who it affects, what’s changed, and what steps Swiss and international companies must take to ensure compliance.
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May 26, 2025 |
David Merz
In Switzerland, ongoing professional development is an important part of almost every career journey, but further education and training often means taking on substantial personal costs. Fortunately, Swiss tax law provides significant deductions for many types of job-related education and training expenses.
In this article, we outline the legal basis for these deductions, explain who can claim them, which expenses qualify, and how the rules differ between federal and cantonal tax authorities. We'll also clarify some commonly misunderstood details and show you how to make the most of the available tax relief.
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May 13, 2025 |
David Merz
Business owners in Switzerland need to understand the administrative requirements and legal implications of changing their company’s domicile address. Whether relocating within the same municipality, to a different municipality in the same canton, or across cantonal borders, businesses must ensure that their new address is properly registered with the commercial register.
The complexity of the process depends on the type of business entity and the extent of the domicile change. Some changes require only a simple address update, while others involve amendments to the Articles of Association, notary certification, and re-registration in a new canton. This guide provides a step-by-step breakdown of the different scenarios and requirements involved in changing a company’s domicile address.
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April 29, 2025 |
David Merz
In our earlier article, we explored the important topic of choosing the right occupational pension fund (BVG) for your company In this article, we will expand on one critical aspect of occupational pensions for smaller companies—especially SMEs—that do not have their own pension fund: should they opt for a full insurance model or a semi-autonomous solution?
Each model has its own advantages and trade-offs in terms of security, return potential, administrative requirements, and risk distribution. We explore both approaches in detail to help you make an informed decision that aligns with your company’s risk tolerance, financial goals, and long-term planning.
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January 21, 2025 |
David Merz
The newly enacted 2025 Pillar 3a purchase rules mark a significant shift in Switzerland’s retirement savings landscape, allowing employees to fill contribution gaps and enhance their financial security. While these changes offer new opportunities for tax savings and flexibility, they come with limitations and administrative challenges. This article explores the new provisions, their implications for taxpayers, and how they compare to the original Ettlin Motion, providing insights for effective retirement planning.
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January 20, 2025 |
David Merz
On 1st January 2025, significant changes to the Value Added Tax (VAT) laws were implemented in Switzerland. The partial revision of the VAT Act (MWSTG) represents a significant step toward modernizing the country’s tax framework in a rapidly digitalizing world. The changes primarily address the growing prominence of e-commerce platforms but also includes broader updates aimed at simplifying processes, increasing transparency, and closing gaps in compliance. This article explores the key changes to Swiss VAT, their implications for businesses, and practical steps for navigating the new rules effectively.
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