7.5.10 Interest Rates for Loans in Foreign Currencies

The granting of interest free loans in foreign currency towards shareholders or affiliated parties or excessive interest payments on loans given by shareholders or affiliated parties in foreign currency are considered as hidden distributions. The Swiss Federal Tax Administration has therefore published guidelines for the measurement of adequate interest rates. The most important interest rates applicable in 2010 are as follows:

EUR = 3.5%
USD = 3.5%
GBP = 4.0%
CAD = 3.5%

Further interest rates can be viewed under http://www.estv.admin.ch/bundessteuer/dokumentation/00242/00383/index.html 

7.1.10: SFTA sets year-end and annual average exchange rates for 2009

The Swiss Federal Tax Authority has published the year-end exchange rates for all currencies as at 31.12.09 together with the annual average exchange rates for 2009. The main year-end exchange rates are as follows:

1 EUR = CHF 1.483150
1 USD = CHF 1.033734
1 GBP = CHF 1.669368

The full set of foreign currency exchange rates can be viewed at http://www.ictax.admin.ch/2009/de/index.html. We recommend our clients to use the SFTA's published exchange rates when converting foreign currencies.

9.11.09 Value-added tax

New Value-Added Tax Act from 1.1.2010

http://www.estv.admin.ch/index.html?lang=de

The main changes:
- VAT liability threshold:  turnover of CHF 100 000
- Settlement at the net tax rate is possible up to turnover of CHF 5 million
- The 50% reduction of input tax on food and drink no longer applies
- Own use is now only calculated as a correction of input tax deducted
- Effective reporting method replaces marginal taxation system.

Increase of value-added tax rates from 1.1.2011
(more detailed information to follow).

3.11.09 Praxity ranks 8th worldwide

As of 31 December 2008, 109 companies in 72 countries had joined Praxity. These companies had 24,692 employees based in 511 offices.

The combined fee income of all these companies totalled USD 3.2 billion (EUR 2.3 billion), making Praxity the world's biggest alliance of independent consultancies. According to a survey conducted by the International Accounting Bulletin, Praxity therefore ranks eighth among all networks and other associations.

Find out more about Praxity at:
http://www.haussmann-treuhand.ch/index.php/int-allianz.html.

4.9.09 Taxation

Revision of savings book tax allowance

From 1 January 2010, amounts of interest up to CHF 200 are no longer liable to withholding tax. However, it should be noted that this upper limit only applies if a person's total interest income, from all account balances, does not exceed the sum of CHF 200.
The previous legal limit was CHF 50.


Abolition of Dumont Practice

Likewise from 1 January 2010, the "Dumont Practice" is abolished at both federal and cantonal level (Zurich). According to the precedents of the Federal Supreme Court, newly acquired properties had to be identified either as neglected or as well maintained during the first five years of ownership. In the case of neglected properties, tax relief was claimable for the costs of maintenance, but not of repairs.
Abolition of the Dumont Practice means that from 1 January 2010, property maintenance can be claimed for newly acquired properties in the same way as for existing properties.

6.1.09: SFTA sets year-end and annual average exchange rates for 2008

The Swiss Federal Tax Authority has published the year-end exchange rates for all currencies as at 31.12.08 together with the annual average exchange rates for 2008. The main year-end exchange rates are as follows:

1 EUR = CHF 1.47955
1 USD = CHF 1.064386
1 GBP = CHF 1.530278

The full set of foreign currency exchange rates can be viewed at http://www.ictax.admin.ch/2008/de/index.html. We recommend our clients to use the SFTA's published exchange rates when converting foreign currencies.

12.12.08. Risk assessment – New disclosure requirements in appendix to financial statements

Revised Swiss stock corporation legislation now stipulates a new requirement regarding disclosure in the appendix to corporate financial statements, which will apply for the first time to all statements for the financial year to the end of 2008.

All joint stock companies, regardless of their size and/or whether the company is obliged to undergo audit, must furnish proof that a risk assessment has been carried out.