Does the board of directors' fee have to be subject to value-added tax?
Director's fees are exempt from value-added tax according to Art. 18 para. 2 lit. J VAT Act and thus to be treated similar to a salary payment.
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According to Art. 18 para. 2 lit. J of the VAT Act, no value added tax (VAT) has to be paid on the board of directors' fee.
Due to the fact that no value added tax has to be paid on the board of directors' fee, the fee is equivalent to a salary payment.
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