How long you must retain business records

Swiss companies, regardless of their industry affiliation or company size, are required to retain business documents for a specified duration. A violation of the retention obligation can be criminally prosecuted.

Retain business documents

Swiss law obligates companies to retain their business documents for a specified duration. The main legal sources regarding the retention obligation are the Code of Obligations (OR), the tax laws (DBG, StHG, and MWSTG), the Commercial Book Ordinance (GebüV), and the Penal Code (StGB).

Commercial law retention regulations

The obligation to retain business documents generally arises from the provisions of the Code of Obligations. According to Art. 958f OR, business books, accounting vouchers, business and audit reports must be retained for ten years (para. 1). The period begins at the end of the respective business year. While business and audit reports must be kept in writing and signed (para. 2), business books and accounting vouchers may be stored on paper, electronically, or in a comparable manner, provided the consistency with the underlying business transactions and facts is ensured and they can be made readable again at any time (para. 3). Also, documents underlying an entry into the stock ledger or the directory of bearer shareholders must be kept for ten years (Art. 686 para. 5 or Art. 697l OR). The commercial law retention obligations of the Code of Obligations are further specified in the Commercial Book Ordinance.

Tax law retention obligations

In addition to the Code of Obligations, the tax laws also contain retention regulations. Natural persons with income from self-employment and legal entities are obliged to retain their business books and annual accounts or statements of income and expenses with simplified accounting for ten years (Art. 126 para. 3 DBG in conjunction with Art. 42 para. 4 StHG). Additional retention obligations can also be found in value-added tax law. Taxable persons are required to keep their business books, vouchers, business papers, and other records until the final expiration of the tax claim, unless Art. 958f OR provides otherwise (Art. 70 para. 2 MWSTG). Business documents related to the calculation of the input tax correction and self-consumption of immovable properties must be retained for twenty years (Art. 70 para. 3 MWSTG).

Consequences of a duty violation

Violations of the regulations for retaining business documents are subject to two penal provisions. Anyone who intentionally or negligently fails to comply with their legal obligation to retain business books, business letters, and business telegrams will be penalized with a fine (Art. 325 StGB). In the event that bankruptcy has already been declared against the person concerned, or in another manner a certificate of loss has been issued against them, a violation of the retention obligation is punishable with imprisonment of up to three years or a fine (Art. 166 StGB).

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

• Further information
   
• Calculate an offer for fiduciary