Taxes

In Switzerland, employers must provide their employees with accurate salary statements for tax declarations; violations can have serious consequences. For employee participations, specially detailed certificates are required, regulated by the MBV.

Emission duties are due when legal entities acquire capital and apply to shares, profit participation certificates, etc.; exemptions exist for charitable purposes or restructurings. The tax is 1% of the value of the participation rights.

The turnover tax is applicable on the payment-based transfer of ownership of securities, involving securities dealers. The assessment of the tax is based on the paid consideration or the market value for domestic (1.5 per mille) and foreign (3 per mille) securities.

Stamp duties, regulated in federal law, are divided into issue, sales taxes and taxes on insurance premiums. In 2018, Switzerland expected revenue from these taxes of 2.36 billion francs, approximately 3.3% of the federal budget.

Taxes on severance payments depend on whether they are of a providential or replacement income nature, with different taxation methods. The employer must clearly break down the composition of the severance payment and have it confirmed.

Severance payments that serve as replacement income are taxed and often serve as compensation for lost wages or as damages for pain and suffering. They do not include a provision gap and remain unaffected by additional pension payments.

Severance payments with a pension character are discussed to close financial gaps in old age, disability, or death. These lump sum payments are tax-relevant if certain criteria such as age and cessation of employment are met.

Factual employer status can trigger a withholding tax liability in Switzerland. The tax liability applies from the first day of work and is based on the gross salary.

Transfers within corporate groups can lead to de facto employer status if the receiving company assumes significant employer responsibilities. Important criteria are authority to issue instructions, assumption of risk, and integration of the employee.