Accounting & Tax Services in Switzerland.
Annual accounts, tax returns, VAT administration, and payroll — fully managed by Swiss-qualified professionals from our Zurich office.
Federal Tax
8.5%
Total Tax Range
11.9–21.6%
VAT Standard
8.1%
Filing Deadline
6 Mo.
Social Contrib.
~12.9%
Standards
OR/FER/IFRS
Swiss Accounting Standards
Swiss companies must maintain their financial records according to one of three accounting frameworks. The Swiss Code of Obligations (OR), specifically Art. 957–958f OR, sets the minimum bookkeeping and financial reporting requirements applicable to all commercial register-listed entities. These provisions mandate a balance sheet, income statement, and notes to the financial statements.
For medium-sized and larger companies, Swiss GAAP FER provides a more comprehensive, principles-based framework developed by the Foundation for Accounting and Reporting Recommendations. Companies listed on the SIX Swiss Exchange are required to apply IFRS (International Financial Reporting Standards).
Annual Accounts & Financial Statements
Every Swiss AG and GmbH must prepare annual financial statements within six months after the end of the business year. The board of directors (Verwaltungsrat) is responsible for financial reporting and must present the accounts to the shareholders' meeting (Generalversammlung) for approval. We handle the entire preparation process, from monthly bookkeeping through to the final approved statements.
Corporate Tax in Switzerland
Switzerland levies corporate income tax at both the federal and cantonal/communal levels. The federal rate is a flat 8.5% on net profit. Cantonal and communal rates vary significantly, resulting in combined effective rates ranging from 11.9% (Canton Zug) to approximately 21.6% (Canton Geneva). In Canton Zurich, the combined effective rate is approximately 19.7%.
We prepare and file corporate tax returns with both the Federal Tax Administration (ESTV) and the cantonal tax authority. Our tax advisory covers structural optimization, holding privilege analysis, and international tax planning within the framework of Switzerland's 100+ double taxation agreements.
VAT Administration
Companies with annual turnover exceeding CHF 100,000 must register for Swiss VAT. The standard rate is 8.1%, with a reduced rate of 2.6% for everyday goods and 3.8% for accommodation services. We handle VAT registration, quarterly or semi-annual returns, input tax recovery, and correspondence with the Federal Tax Administration.
For companies with cross-border transactions, our fiscal representation service ensures full compliance with Swiss import VAT and customs requirements.
Payroll & Social Security
Swiss employers face a complex web of social security obligations. The first pillar contributions (AHV/IV/EO/ALV) total approximately 12.86% of gross salary, split equally between employer and employee. Additional mandatory contributions include occupational pension (BVG/LPP), accident insurance (UVG/LAA), and supplementary daily sickness allowance.
We manage the complete payroll cycle: monthly salary processing, social security declarations, source tax deductions for non-resident employees, annual wage certificates (Lohnausweis), and year-end reporting to all relevant authorities.
Audit Requirements
Swiss companies are subject to one of three audit regimes depending on their size:
Ordinary audit — required for publicly listed companies and entities exceeding two of three thresholds (CHF 20M total assets, CHF 40M revenue, 250 employees)
Limited audit (Eingeschrankte Revision) — for companies with more than 10 full-time employees on annual average
Opting-out — companies with fewer than 10 employees may unanimously waive the audit requirement
Transfer Pricing & Intercompany Transactions
Switzerland follows the OECD Transfer Pricing Guidelines. All intercompany transactions must be conducted at arm's length prices. The Federal Tax Administration actively reviews transfer pricing arrangements, particularly for cross-border services, IP licensing, and management fees. Non-compliance can result in profit adjustments, withholding tax implications, and double taxation.
We prepare transfer pricing documentation, benchmark studies, and intercompany agreements that withstand scrutiny from Swiss and foreign tax authorities. This is particularly important for companies using a shelf company as part of an international group structure.
Bookkeeping Obligations (Art. 957–958 OR)
Under Art. 957 OR, every entity registered in the commercial register must maintain accounting records that reflect its financial position and business transactions. Books and supporting documents must be retained for 10 years. Financial statements must provide a true and fair view (or at minimum comply with OR standards) and must be signed by the responsible governing body.
Swiss Tax & Social Contribution Overview
| Category | Rate / Details | Notes |
|---|---|---|
| Federal Corporate Tax | 8.5% | On net profit, all cantons |
| Cantonal/Communal Tax | 3.4% – 13.1% | Varies by canton & municipality |
| Canton Zurich Combined | ~19.7% | City of Zurich effective rate |
| VAT Standard Rate | 8.1% | Most goods & services |
| VAT Reduced Rate | 2.6% | Food, medicine, books, newspapers |
| VAT Accommodation | 3.8% | Hotel & lodging services |
| AHV/IV/EO (1st Pillar) | 10.6% | Split 50/50 employer/employee |
| ALV (Unemployment) | 2.2% | On salary up to CHF 148,200 |
| Total Social Contributions | ~12.86% | Excl. BVG/UVG |
Get Your Swiss Accounting in Order
From company formation to ongoing compliance — we handle all accounting and tax obligations for your Swiss entity.
Complementary Services
Frequently Asked Questions
What accounting standards apply in Switzerland?
Swiss companies can use three frameworks: the Swiss Code of Obligations (OR, Art. 957–958), Swiss GAAP FER for medium-sized entities, or IFRS for internationally active or publicly listed companies. Most SMEs use the OR minimum standards.
What is the corporate tax rate in Switzerland?
The federal rate is 8.5% on net profit. Cantonal and communal taxes vary, resulting in combined effective rates between 11.9% and 21.6%. In Canton Zurich, the combined rate is approximately 19.7%. The Federal Tax Administration publishes current rates annually.
What is the VAT rate in Switzerland?
The standard Swiss VAT rate is 8.1%. A reduced rate of 2.6% applies to everyday goods (food, medicine, books), and 3.8% for accommodation services. Companies exceeding CHF 100,000 annual worldwide turnover must register.
When are tax returns due?
Corporate tax returns are generally due within 6 months after the fiscal year end. In Canton Zurich, the standard deadline is September 30 for calendar-year companies. Extensions can be requested from the cantonal tax authority.
What are the bookkeeping obligations?
Under Art. 957–958 OR, all commercial register-listed entities must maintain proper bookkeeping including balance sheet, income statement, and notes. Books and supporting documents must be retained for 10 years.
What are the social security contributions?
AHV/IV/EO/ALV contributions total approximately 12.86% of gross salary, split equally between employer and employee (6.43% each). Additional contributions for BVG (occupational pension) and UVG (accident insurance) also apply.
What audit requirements apply?
Three regimes exist: ordinary audit (for public/large companies), limited audit (for companies with 10+ employees), or opting-out (for companies with fewer than 10 employees who unanimously waive the requirement).
Do I need a Swiss accountant?
While not legally mandatory, a professional Swiss accountant is strongly recommended. Swiss accounting rules, tax deadlines, and social security requirements are complex, and errors can result in penalties and compliance issues.
What is the difference between Swiss GAAP FER and IFRS?
Swiss GAAP FER is a simplified, principles-based Swiss framework suitable for SMEs. IFRS is the comprehensive international standard required for SIX-listed companies. Swiss GAAP FER is less complex and more cost-effective to implement.
How do transfer pricing rules work?
Switzerland follows OECD Transfer Pricing Guidelines. All intercompany transactions must be at arm's length. The Federal Tax Administration reviews arrangements and may adjust profits if pricing deviates from market conditions.
What payroll obligations do employers have?
Employers must deduct and remit social security (AHV/IV/EO/ALV), source tax for non-residents, occupational pension (BVG), and accident insurance (UVG). Monthly certificates and annual wage declarations are required.
Can you handle accounting for a shelf company?
Yes. We provide seamless accounting onboarding for shelf company purchases, including opening balance sheet, tax registration, VAT setup, social security enrollment, and ongoing bookkeeping from day one.