Consulting upon tax system in Switzerland

Interlegal corporate lawyers consulted the client upon tax system in Switzerland and foreign citizen employment at Swiss companies.

Each of 26 Swiss cantons has its own taxation rules. Apart from general federal tax, legal entity shall bear tax burden on cantonal/municipal level too. Consulting covered tax effects for Swiss companies in the form of S.a.r.l. (Limited Liability Company) registered in the canton of Geneva.

Company shall submit mandatory financial reports. Audit shall be held only in case of certain flow parameters and personnel amount.

Since 2020, tax reform will be launched in Switzerland, facilitating decrease of aggregate income tax rate (federal + cantonal/municipal taxes) in most cantons.

Consulting covered also nuances of foreign citizen employment at Swiss companies and taxes on their salaries. In particular, apart tax on incomes received as salaries, natural persons shall be subject to mandatory social and medical insurance.

Interlegal associate attorney Victoria Russeva, junior lawyer Viktoria Yankovskaya, under the general supervision of partner Irina Voyevodina, drafted the consulting.