The ABC of Trustees

The role of a trustee is to comprehensively support companies in the areas of accounting, auditing, and taxes. However, following the trustee's explanations on legal obligations and tax improvement opportunities is not always easy. Whether fiscal representation, IFRS, or sub-balance – with the ABC of trustees, you keep track.

A for Automatic Exchange of Information

The automatic exchange of information refers to a global standard or mechanism through which all financial accounts of taxpayers are exchanged among states. The purpose of the automatic exchange of information is to increase transparency in tax matters and prevent tax evasion.

F for Fiscal Representation

Fiscal representation refers to an economic agent who, on behalf of a foreign economic participant, assumes the VAT obligations towards the domestic tax authorities. If a foreign company is liable for VAT in Switzerland, Swiss legislation requires the appointment of a fiscal representative in Switzerland.

I for IFRS

The International Financial Reporting Standards (IFRS) are internationally recognized accounting standards issued by the International Accounting Standards Board (IASB). More than half of Swiss companies prepare their annual financial statements according to the IFRS. Besides IFRS, the Swiss accounting standard Swiss GAAP FER and the American US GAAP regulations are also frequently applied.

M for Value Added Tax (VAT)

The value-added tax (VAT) is levied on the consumption of goods and services and serves the federal government to cover its expenses. According to the law, any entity, regardless of its legal form, purpose, or profit intent, that operates a business is liable for VAT. Thus, private individuals or sole proprietorships must pay VAT as well as corporations. The VAT can be passed on to the end consumer.

S for Tax Optimization

The term tax optimization encompasses all methods and procedures that involve reducing the tax burden by utilizing legal tax reduction options. Professional tax planning or optimization allows minimizing the taxes owed.

T for TreuhandSuisse

TreuhandSuisse, the Swiss Association of Trustees, is the largest industry association for SME trustees in Switzerland. The association's tasks include setting professional standards for the trustee profession and representing the interests of its members towards politics, economy, and society.

Ü for Overindebtedness

Overindebtedness is a balance sheet condition that exists when assets are no longer sufficient to cover external capital. If this is the case, an interim balance sheet must be prepared and audited by a licensed auditor. If he confirms that the outstanding claims are neither covered at going concern nor liquidation values, the board of directors must notify the judge of the overindebtedness.

W for Audit

An audit or revision is the examination of a company's annual financial statement. Depending on the legal form, Swiss companies are required to have their financial statements audited by a licensed auditor or audit expert.

Findea helps you to keep track of your company's financial situation at all times.