Taxes

A tax ruling is an advance binding information obtained from the tax authorities, which creates legal certainty and protects against criminal consequences. The validity of a tax ruling depends on an accurate presentation of the facts and does not provide protection against changes in legal norms after its issuance.

The Federal Court confirmed the cumulative deductibility of public transportation costs and bicycle flat rate for the commute, regardless of alternative transportation options. The Professional Expenses Ordinance allows a maximum travel cost deduction of 3000 francs and does not establish a ranking order between bicycle, bus, and walking.

Tax disputes between cantons often arise because it is unclear where a person's tax residence is located. The tax domicile is determined by the center of life and the intention of permanent residence.

The tax liability for items such as flatscreens or silver cutlery varies by canton in Switzerland and depends on whether they are considered tax-free household goods or taxable assets. In the category of capital investments, items must be declared in the tax return, otherwise back taxes and penalties may be imposed.

Tax Compliance helps companies comply with tax regulations and avoid tax evasion. It includes organizational measures and intelligent tax planning to minimize the financial burden.

The patent box in Switzerland promotes research and development through tax advantages; since 2020, companies can significantly reduce taxes on profits from patents. Differences in tax reductions of up to 90% vary depending on the canton.

The ESTV aims for all tax data to be submitted electronically in the future, despite data protection concerns from various parties. The Federal Council supports this digitalization and facilitates easing of the signature requirement at the cantonal level.

Zurich extended the deadline for tax returns until 09/30/2020 due to COVID-19. Penalties threaten in case of missing the deadline, but a quick follow-up submission can help.

Taxable persons must submit necessary documents for the examination of taxes and input tax deductions to the FTA; if this is not done, the FTA can carry out a discretionary assessment. In cases of missing or incorrect documentation, the Federal Court supported a discretionary estimate as legally compliant.