Our blog on tax law topics
Our blog on tax law topics
Our blog on tax law topics
Our blog on tax law topics
Administrative Assistance
Settlement
BEPS
Covid-19
Crypto
Income tax
Profit tax
Plot
International tax law
Jurisprudence
Divorce
Social security contributions
TRAF
Start-ups
Tax Planning
Wealth tax
Withholding tax (WHT)
Reset filter!
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Working from Home in an International Context: When Does a Home Office Become a Permanent Establishment?
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
19
.
10
.
2026

Working from Home in an International Context: When Does a Home Office Become a Permanent Establishment?

Home Offices and Permanent Establishments in International Tax Law: Requirements, Current OECD Practice, and Tax Consequences.
International tax law
Settlement
Income tax
Profit tax
Tax Planning
The Federal Supreme Court on the Distinction Between Personal and Business Assets in Real Estate Matters
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
21
.
09
.
2026

The Federal Supreme Court on the Distinction Between Personal and Business Assets in Real Estate Matters

Federal Supreme Court Decision 9C_126/2024 clarifies the distinction between personal and business assets with respect to real estate and determines when there is no commercial use of real estate.
Income tax
Jurisprudence
Plot
Tax Treatment of Stock Bequests in Business Succession
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
17
.
08
.
2026

Tax Treatment of Stock Bequests in Business Succession

The Federal Court does not classify a bequest of shares to a long-serving managing director as earned income, since ensuring the company's succession is the primary
Income tax
Jurisprudence
Tax Planning
Indirect Partial Liquidation: Tax Treatment of Sales of Equity Interests
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
25
.
06
.
2026

Indirect Partial Liquidation: Tax Treatment of Sales of Equity Interests

The sale of an investment held as part of one’s personal assets is generally tax-free. When does an indirect partial liquidation occur, and what should be considered when making the sale?
Income tax
Tax Planning
No Interest Deduction for Acquisition Financing: Federal Supreme Court Clarifies Tax Practice Regarding Debt Push-Down
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
28
.
05
.
2026

No Interest Deduction for Acquisition Financing: Federal Supreme Court Clarifies Tax Practice Regarding Debt Push-Down

No interest deduction for debt push-downs unrelated to operating activities. The Federal Supreme Court clarifies Art. 58 of the Federal Income Tax Act.
Jurisprudence
Profit tax
Tax Planning
The mutual agreement procedure in Switzerland
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
22
.
04
.
2026

The mutual agreement procedure in Switzerland

The mutual agreement procedure under the DTA is designed to prevent double taxation and governs the resolution of international tax disputes between two countries.
International tax law
Jurisprudence
Federal Administrative Court Ruling on the Reporting Procedure for WHT Non-Cash Benefits
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
30
.
03
.
2026

Federal Administrative Court Ruling on the Reporting Procedure for WHT Non-Cash Benefits

No reporting procedure without a clear right to a refund. Ruling on WHT monetary benefits.
Jurisprudence
Withholding tax (WHT)
Property gains tax: Federal Supreme Court requires full tax deferral for mixed gifts
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
02
.
03
.
2026

Property gains tax: Federal Supreme Court requires full tax deferral for mixed gifts

Federal court ruling: In the case of mixed gifts, the deferral of real estate gains tax must be granted in full, and partial cantonal practices are not permitted.
Jurisprudence
Tax Planning
Plot
Safe haven interest rates for 2026
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
03
.
02
.
2026

Safe haven interest rates for 2026

The FTA has published the safe haven interest rates for 2026. Here is an overview of loan interest rates, asset and liability loans, and foreign currencies.
Income tax
Profit tax
Withholding tax (WHT)
International tax law
Tax Planning
Transposition of shareholdings in Swiss tax law
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
21
.
01
.
2026

Transposition of shareholdings in Swiss tax law

Transposition of shareholdings in Swiss tax law: requirements and tax consequences for transfers from private assets.
Income tax
Jurisprudence
Federal Supreme Court ruling on the taxation of irrevocable fixed interest trusts in Switzerland
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
08
.
12
.
2025

Federal Supreme Court ruling on the taxation of irrevocable fixed interest trusts in Switzerland

The Federal Supreme Court clarifies the taxation of fixed interest trusts in Switzerland and emphasizes the importance of clearly defined beneficiary rights.
International tax law
Wealth tax
Jurisprudence
Tax Planning
Delimitation of salary and dividend in Swiss social security law
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
14
.
11
.
2025

Delimitation of salary and dividend in Swiss social security law

When does a dividend qualify as a salary under social security law? The article explains the criteria of the compensation offices and the Jurisprudence.
Income tax
Profit tax
Jurisprudence
Social security contributions
Tax Planning
Federal Supreme Court clarifies capital contribution principle for WHT
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
12
.
10
.
2025

Federal Supreme Court clarifies capital contribution principle for WHT

Federal Supreme Court clarifies capital contribution principle for WHT: The correct booking and reporting at the time of repayment is decisive.
Jurisprudence
Taxation of US LLCs in Switzerland
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
16
.
09
.
2025

Taxation of US LLCs in Switzerland

Taxation of US LLCs in Switzerland: An overview of qualification, Jurisprudence, cantonal practice and tax consequences.
International tax law
Income tax
Wealth tax
Federal Supreme Court on the tax admissibility of fluctuation reserves
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
10
.
06
.
2025

Federal Supreme Court on the tax admissibility of fluctuation reserves

The Federal Supreme Court denies the tax recognition of fluctuation reserves in market value accounting - despite their admissibility under commercial law.
Profit tax
Jurisprudence
BGer ruling 9C_666/2024: Capital gain or earned income
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
14
.
05
.
2025

BGer ruling 9C_666/2024: Capital gain or earned income

In its ruling 9C_666/2024, the Federal Supreme Court clarifies whether the resale of employee shares qualifies as capital gains or earned income.
Income tax
Jurisprudence
Change of tax domicile in Switzerland: burden of proof and jurisdiction
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
15
.
04
.
2025

Change of tax domicile in Switzerland: burden of proof and jurisdiction

What needs to be considered when changing tax domicile in Switzerland? The article explains tax law principles and practical examples of current rulings.
Income tax
Jurisprudence
Wealth tax
Tax Planning
Hidden equity in Switzerland: tax risks and new regulations
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
11
.
03
.
2025

Hidden equity in Switzerland: tax risks and new regulations

Shareholder loans harbor tax risks. We show how hidden equity is calculated and the consequences of the new circular no. 6a.
Income tax
Profit tax
Safe Haven interest rates for the year 2025
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
28
.
01
.
2025

Safe Haven interest rates for the year 2025

Inadequate interest rates on loans to shareholders are relevant for tax purposes. These interest rates 2025 create legal certainty.
Income tax
Profit tax
Withholding tax (WHT)
Tax Planning
Reform: Extension of the loss offsetting period
Bucher Tax AG, tax consultancy, tax advisor, Lucerne
21
.
01
.
2025

Reform: Extension of the loss offsetting period

Find out how the planned extension of loss offsetting to 10 years will ease the burden on companies and strengthen Switzerland's tax position.
Tax Planning
Income tax
Profit tax
Stay up to date - Subscribe to
our newsletter
Thank you very much! You are registered for our newsletter!
Oops! Something went wrong during registration. Please try again or write to us directly at info@bucher-tax.ch.

Working from Home in an International Context: When Does a Home Office Become a Permanent Establishment?

The growing prevalence of working from home is transforming the world of work and, at the same time, raising new tax issues. This is particularly true for cross-border employment relationships. If an employee regularly works from his or her residence in another country, it must be determined whether this constitutes a so-called permanent establishment for the employer. However, working from home does not automatically result in the creation of a permanent establishment; the specific circumstances of each individual case are decisive.

Working from Home in an International Context: When Does a Home Office Become a Permanent Establishment? Bucher Tax AG

The Federal Supreme Court on the Distinction Between Personal and Business Assets in Real Estate Matters

In its ruling 9C_126/2024, the Federal Supreme Court ruled that the transaction did not constitute commercial real estate trading. Despite development, external financing, and subsequent sale, a Zurich property remained part of the taxpayer’s private assets. The decisive factor was the overall assessment of the circumstantial evidence.

The Federal Supreme Court on the Distinction Between Personal and Business Assets in Real Estate Matters Bucher Tax AG

Tax Treatment of Stock Bequests in Business Succession

A bequest of shares to a long-serving managing director raises the question of whether the bequest should be classified as taxable income. The Federal Supreme Court holds that this is not the case if the succession plan—and not the employment relationship—is the decisive reason for the gift.

Tax Treatment of Stock Bequests in Business Succession Bucher Tax AG

Indirect Partial Liquidation: Tax Treatment of Sales of Equity Interests

Indirect partial liquidation is one of the most significant tax pitfalls in corporate sales. Anyone selling equity interests held as part of their personal assets should be fully aware of the legal requirements and potential tax consequences.

Indirect Partial Liquidation: Tax Treatment of Sales of Equity Interests Bucher Tax AG

No Interest Deduction for Acquisition Financing: Federal Supreme Court Clarifies Tax Practice Regarding Debt Push-Down

The Federal Supreme Court clarifies the requirements for the deduction of interest for income tax purposes in connection with acquisition financing. The decisive factor is the objective connection to the company’s economic activity during the relevant tax period.

No Interest Deduction for Acquisition Financing: Federal Supreme Court Clarifies Tax Practice Regarding Debt Push-Down Bucher Tax AG

The mutual agreement procedure in Switzerland

The mutual agreement procedure is an instrument of international law designed to prevent or eliminate international double taxation. It governs the mutual agreement between the tax authorities of two countries, although the person concerned does not have party status during the negotiations. This article explains how the procedure is enshrined in Swiss law, how it is initiated, conducted, and implemented, what deadlines must be observed, and what costs (including interest) can be expected.

The mutual agreement procedure in Switzerland Bucher Tax AG

Federal Administrative Court Ruling on the Reporting Procedure for WHT Non-Cash Benefits

The Federal Administrative Court sets forth the requirements for the reporting procedure regarding monetary benefits. The decisive factors are the right to a refund and, in particular, the absence of intent in the case of non-reporting.

Federal Administrative Court Ruling on the Reporting Procedure for WHT Non-Cash Benefits Bucher Tax AG

Property gains tax: Federal Supreme Court requires full tax deferral for mixed gifts

The Federal Supreme Court clarifies that Art. 12 para. 3 lit. a StHG requires a complete deferral of real estate gains tax in the case of mixed gifts. Proportional taxation violates federal law.

Property gains tax: Federal Supreme Court requires full tax deferral for mixed gifts Bucher Tax AG

Safe haven interest rates for 2026

The FTA has published the safe haven interest rates for 2026. This article shows the minimum and maximum interest rates that are recognized for tax purposes for loans between Swiss companies and related parties.

Safe haven interest rates for 2026 Bucher Tax AG

Transposition of shareholdings in Swiss tax law

Transposition is a tax correction mechanism that, in the case of certain sales of shareholdings, overrides the tax exemption for private capital gains under Art. 16 para. 3 of the Federal Tax Act and classifies the profit generated as taxable income, either in whole or in part. This article outlines the systematic principles, legal requirements, and practical consequences of this classification of this specific clause.

Transposition of shareholdings in Swiss tax law Bucher Tax AG

Federal Supreme Court ruling on the taxation of irrevocable fixed interest trusts in Switzerland

Federal Supreme Court ruling 9C_677/2024 clarifies the treatment of irrevocable fixed interest trusts for wealth tax purposes. The decisive factor is whether the beneficiaries' share of the trust assets can be determined or whether the income must be capitalized.

Federal Supreme Court ruling on the taxation of irrevocable fixed interest trusts in Switzerland Bucher Tax AG

Delimitation of salary and dividend in Swiss social security law

The distinction between wages and dividends is a key challenge, particularly in owner-managed companies. It has a direct impact on the amount of social security contributions and can lead to considerable additional claims if incorrectly assessed. However, the line between earned income and capital gains is often blurred. This article outlines the key principles.

Delimitation of salary and dividend in Swiss social security law Bucher Tax AG

Federal Supreme Court clarifies capital contribution principle for WHT

Federal Court ruling clarified: For the tax-free repayment of capital contribution reserves, it is crucial that they are reported in accordance with commercial law and correctly booked and reported to the FTA at the time of repayment.

Federal Supreme Court clarifies capital contribution principle for WHT Bucher Tax AG

Taxation of US LLCs in Switzerland

The tax treatment of US LLCs in Switzerland is complex and controversial. Between SSK practice notes, cantonal practice and federal court rulings, the qualification remains dependent on the individual case. Our article shows the consequences and what professionals should pay attention to.

Taxation of US LLCs in Switzerland Bucher Tax AG

Federal Supreme Court on the tax admissibility of fluctuation reserves

Fluctuation reserves may be formed under commercial law - but stricter requirements apply for tax purposes. In a recent ruling, the Federal Supreme Court confirmed that fluctuation reserves are only recognized in the market value valuation of securities if a specific risk is plausibly demonstrated. The decision has been met with criticism and raises questions about the coherence of commercial and tax law.

Federal Supreme Court on the tax admissibility of fluctuation reserves Bucher Tax AG

BGer ruling 9C_666/2024: Capital gain or earned income

In its ruling 9C_666/2024, the Federal Supreme Court had to decide on the tax qualification of a share sale by an employee to her employer. The central question was whether a gain of CHF 220,000 should be classified as a tax-free capital gain or as taxable earned income. The decision brings more clarity to the distinction between private capital gains and taxable benefits from the employment relationship - particularly in the case of intra-group transactions.

BGer ruling 9C_666/2024: Capital gain or earned income Bucher Tax AG

Change of tax domicile in Switzerland: burden of proof and jurisdiction

The transfer of the main tax domicile is a classic point of contention in intercantonal tax law. This article provides an up-to-date overview of the requirements for a change of tax domicile in Switzerland and shows which party bears the burden of proof in situations of moving away and moving in - and what the consequences are if no proof is provided.

Change of tax domicile in Switzerland: burden of proof and jurisdiction Bucher Tax AG

Hidden equity in Switzerland: tax risks and new regulations

Shareholder loans are an attractive alternative for equity funding in Switzerland - but caution is advised: If the debt capital exceeds the maximum values permitted for tax purposes, there is a risk of tax consequences. Our article explains the calculation of hidden equity using a practical example, highlights the tax implications and shows the most important changes in the new circular no. 6a from the Federal Tax Administration (FTA).

Hidden equity in Switzerland: tax risks and new regulations Bucher Tax AG

Safe Haven interest rates for the year 2025

If loans from Swiss companies to their shareholders or other related parties (loan receivables) do not bear sufficient interest, this constitutes a pecuniary benefit to the extent of the underpayment of interest. Such pecuniary benefit may be subject to Swiss withholding tax as well as corporate income taxes.

Safe Haven interest rates for the year 2025 Bucher Tax AG

Reform: Extension of the loss offsetting period

The planned extension of the loss offsetting period from seven to ten years is intended to provide tax relief for companies and promote their economic recovery. But are these measures enough? This article sheds light on the background, challenges and potential for Switzerland's competitiveness.

Reform: Extension of the loss offsetting period Bucher Tax AG

Provisions for vacation credits and taxes

In practice, there are regular discussions about which expenses are recognized as provisions and are therefore tax-deductible. A recent federal court ruling has called into question the previous tax treatment of provisions for vacation credits in many cantons.

Provisions for vacation credits and taxes Bucher Tax AG

Legal consequences of violating the safe haven interest rates

The safe haven interest rates published by the Swiss Federal Tax Administration (SFTA) are an important instrument for many companies to mitigate and avoid tax disputes. In the past, it was assumed that a non-cash benefit/hidden profit distribution only existed if the interest owed in the interest period exceeded the safe haven interest rate in accordance with the relevant circular by the SFTA. The interest rate according to the circular could also be considered a "safe haven" if it was not adhered to. However, a new decision by the Federal Supreme Court (BGer of July 17, 2024, 9C_690/2022, E. 6.2) clarifies that this practice cannot always be applied. The decision might have far-reaching consequences, which we would like to explain in this blog post using a practical example.

Legal consequences of violating the safe haven interest rates Bucher Tax AG

Minimum tax update - introduction of the IIR in Switzerland

With the national supplementary tax (QDMTT), Switzerland has implemented parts of Pillar 2 of the OECD/G20 project on the taxation of the digital economy as of January 1, 2024.

Minimum tax update - introduction of the IIR in Switzerland Bucher Tax AG

AIA and crypto assets

On May 15, 2024, the Federal Council opened the consultation on the extension of the international automatic exchange of information in tax matters (AEOI). The extension concerns the new AEOI on crypto assets and the amendment of the standard for the AEOI on financial accounts.

AIA and crypto assets Bucher Tax AG

Income tax and treasury shares

Since the revised accounting law came into force in 2013, repurchases of treasury shares are economically equivalent to a capital reduction or distribution to shareholders. The Board of the Swiss Tax Conference ("SSK") previously took the view that treasury shares are assets regardless of their treatment under commercial law and that book gains or losses must therefore be recognized for tax purposes. In a recent ruling (BGer 9C_135/2023 dated June 6, 2024), the Federal Supreme Court has now clarified how treasury shares must be treated for profit tax purposes.

Income tax and treasury shares Bucher Tax AG

Taxation of a bonus payment

In Switzerland, income is only taxable if it is realized. But what exactly does that mean? In our article, we show you the criteria for the realization of income based on a recent Federal Supreme Court ruling (BGer 9C_663/2022, 9C_664/2022 of 16.08.2023) in connection with bonus payments.

Taxation of a bonus payment Bucher Tax AG

Tax exemption for holding foundations

A "holding foundation" is a foundation that holds an interest in another company and can therefore exercise influence over a company by exercising voting rights. The conditions under which a holding foundation can be tax-exempt are controversial among experts. After a brief list of the conditions for tax exemption in general, the following article shows the legal conditions and the controversial points in the case of a holding foundation, taking into account the leading decision of the Federal Supreme Court from 2021.

Tax exemption for holding foundations Bucher Tax AG

Tax exemption due to non-profit status

In principle, every natural and legal person in Switzerland is obliged to pay taxes. Only under certain conditions laid down in the law is it permissible for legal entities to be exempt from the obligation to pay taxes. This also includes tax exemption due to public or charitable purposes. The basic idea behind the tax exemption of legal entities for public or charitable purposes is based on the idea that a private organization takes on tasks which, according to the law or general opinion, should be performed by the public sector. The private organization therefore takes on tasks in place of state institutions that serve the general public and can be classified under the term "public benefit".

Tax exemption due to non-profit status Bucher Tax AG

The idea of individual taxation

The debate on individual taxation in Switzerland is entering the next round after the Federal Council recently presented an indirect counter-proposal to the popular initiative to abolish the marriage penalty. Our article provides an overview of the current legal situation and the latest developments.

The idea of individual taxation Bucher Tax AG

Safe Haven interest rates for the year 2024

If loans from Swiss companies to their shareholders or other related parties (loan receivables) do not bear sufficient interest, this constitutes a pecuniary benefit to the extent of the underpayment of interest. Such pecuniary benefit may be subject to Swiss withholding tax as well as corporate income taxes.

Safe Haven interest rates for the year 2024 Bucher Tax AG

Cryptocurrencies and taxes - Update 2024

Between mid-October and early November 2021, the two best-known and most capitalized cryptocurrencies, Bitcoin and Ethereum, reached new record highs. Since then, the prices of many cryptocurrencies have corrected sharply downwards again. However, Bitcoin in particular, the oldest of these currencies, resumed its upward trend in 2023, driven by the approval of a Bitcoin ETF by the US Securities and Exchange Commission.

Cryptocurrencies and taxes - Update 2024 Bucher Tax AG

Extension of the loss offsetting period

The permissibility of offsetting losses across periods can be justified primarily on the basis of the total profit principle (profits of a company over its entire lifetime), which in turn is justified by the constitutional principle of taxation according to economic performance. Due to the requirements of the periodicity principle, which is legally stipulated at the level of direct federal tax in Art. 80 para. 1 DFL ( = direct federal tax law) and Art. 79 para. 1 and 2 in conjunction with Art. 58 para. 1 lit. Art. 58 para. 1 lit. a) DFL, tax losses can only be offset within a limited period of time, which is currently seven years.

Extension of the loss offsetting period Bucher Tax AG

Deductibility of fines

By decision of 11 November 2009, the European Commission imposed a fine in the amount of <br>€ 348'000 on a Swiss corporation. The Federal Supreme Court had to decide whether or not this fine could be deducted from taxes in Switzerland.

Deductibility of fines Bucher Tax AG

Flat-rate taxes in Switzerland as a settlement country (2016)

"Lump-sum taxation" stands for a taxation system that allows foreign individuals to pay tax liability in Switzerland outside the ordinary income and wealth tax system.

Flat-rate taxes in Switzerland as a settlement country (2016) Bucher Tax AG

Deductions in the event of an early mortgage cancellation

In the first leading case (the Zurich case), the Federal Supreme Court granted the complainant, owner of a property, the deduction of the early repayment penalty in the event of the mortgage dissolution.

Deductions in the event of an early mortgage cancellation Bucher Tax AG

Tax credit despite failure to submit a tax return

A married couple did not file a tax return for the 2012 fiscal year and was then assessed at dutiful discretion. The assessment grew into legal force.

Tax credit despite failure to submit a tax return Bucher Tax AG

Replacement procurement for real estate companies

In June 2013, a real estate company based in Zurich (hereinafter referred to as X AG) sold a property to Z AG at a price of 32'500'000. Shortly afterwards, X AG submits an application to the Zurich tax authority for a deferral of the property gains tax due to a replacement procurement.

Replacement procurement for real estate companies Bucher Tax AG

Acts against good faith are not subject to legal protection

On 2 July 2009, A. AG (now in liquidation) transferred its registered office from the canton of Lucerne to the canton of Zug, leaving a permanent establishment in U., canton of Lucerne. For the tax period from 1 July 2009 to 30 June 2010, A. AG declared a taxable net profit of CHF 26'395 to the canton of Zug in the course of its liquidation, but did indicate the permanent establishment in the canton of Lucerne to the tax administration.

Acts against good faith are not subject to legal protection Bucher Tax AG

Professional securities dealer?

Many Swiss have invested in securities and trade directly or indirectly at the stock exchange with parts of their savings. These investment activities may lead to profits but also to losses.

Professional securities dealer? Bucher Tax AG

Postal delivery of tax assessment notices abroad

In March 2009, C. GmbH, Linz (Austria) requested the Tax Administration of the Canton of Valais to deliver the mail (e.g. tax assessment notices) for its client (hereinafter taxpayer) directly to Linz (Austria) in future, which the Tax Administration of the Canton of Valais subsequently did.

Postal delivery of tax assessment notices abroad Bucher Tax AG

Lump-sum deduction for real estate

The complainants A.A. and B.A. were owners of several properties during the 2008 tax period.

Lump-sum deduction for real estate Bucher Tax AG

Tax exemption for sports associations

The Swiss Federation of Equestrian Sports applied for a tax exemption for the state and direct federal taxes for the periods between 2002 and 2009 because of the pursuit of public purposes (Art. 56 lit. g DBG). The tax administration of the Canton of Berne refused this exemption and did not deviate from this decision in the appeal proceedings.

Tax exemption for sports associations Bucher Tax AG

Forfeiture of the right to reimbursement (old law)

Since January 1, 2019, the new Art. 23 VStG has been in force, which has fundamentally changed the prerequisites of the refund claim of WHT . However, for withholding tax claims that arose before 1 January 2014, the old law or the old Jurisprudence still applies (see 2C_397/2017 of 9 May 2019), which is explained below.

Forfeiture of the right to reimbursement (old law) Bucher Tax AG

Tax-free compensation for waiver of usufruct

The complainant X. lived in a cohabiting union for several years. Within the framework of this partnership, the couple bought a property and each financed half of the purchase. On 13 May 1998, X.'s partner was granted ownership of the property by notarial certification and X. was granted a right of use to "his" half of the property.

Tax-free compensation for waiver of usufruct Bucher Tax AG

BVG purchases after divorce

In 1999, in the course of a couple's divorce, the husband's pension fund capital existent at the time of the divorce was divided up and half of the capital was paid out or allocated to the wife.

BVG purchases after divorce Bucher Tax AG

Pension payments due to self-employment

In 2006, a gainfully employed person (hereinafter referred to as "taxpayer") also bought into a pension foundation in order to finance early retirement.

Pension payments due to self-employment Bucher Tax AG

Recordkeeping in conflict with the tax authorities

A.A. is the only member of the Board of Directors of B. AG with its registered office in U. On 16 March 2005, he and his then wife were assessed with a taxable income of CHF 65'000 and taxable asset of CHF 0 for cantonal and municipal taxes in 2003, as well as with a taxable income of CHF 59'400 for the direct federal tax in 2003.

Recordkeeping in conflict with the tax authorities Bucher Tax AG

Master File and Local File

The exchange of country-specific reports (CbC Reporting) was declared a minimum standard within the framework of Action Point 13 of the OECD BEPS Project . Switzerland has undertaken to implement it from 1 January 2018. But there are other standards in the BEPS Action Point 13 that Swiss companies should not underestimate - the Master and the Local File.

Master File and Local File Bucher Tax AG

Asset management or commercial lending?

As the owner of a sole proprietorship, A. declared a total of approx. 50 loans with a total loan sum of more than CHF 30 million in the securities register for the state and municipal tax, or the direct federal tax for the tax period 2008 and claimed write-offs in the amount of CHF 690'063.05 per annum.

Asset management or commercial lending? Bucher Tax AG

New reporting procedure for the withholding tax

On 15 February 2017, the amendment of the Federal Act on Withholding Tax (VStG) came into force, which entailed a new regulation for interest on arrears in the reporting procedure.

New reporting procedure for the withholding tax Bucher Tax AG

6 reasons for Switzerland as a settlement country

In the past, Switzerland has established itself as an internationally preferred location for multinational companies and today counts among the most strongly integrated political economies within the global economy. This puts Switzerland on the winning side of globalization.

6 reasons for Switzerland as a settlement country Bucher Tax AG

"Lump-Sum Taxation" vs "Resident but Non-Domiciled"

A comparison of Switzerland's Lump-sum Taxation for Individuals and Great Britain's «Resident but Non-Domiciled».

"Lump-Sum Taxation" vs "Resident but Non-Domiciled" Bucher Tax AG

BVG payments on departure to Israel

Taxpayer X, born in 1959, emigrated to Israel on 30 September 2012 with the intention of settling there. Previously, X lived and worked in Switzerland and regularly paid the mandatory contributions to the pension fund.

BVG payments on departure to Israel Bucher Tax AG

Capital contribution principle for inbound dividends

In his 2012 tax return, A. (plaintiff) declared the amount of CHF 14'677.45 as a taxable dividend from his participation in X. AG with its registered office in Germany. But he did not declare the dividends he received by X. AG on 14 May 2012 and on 8 November 2012, which were distributed to him from the company's tax deposit account.

Capital contribution principle for inbound dividends Bucher Tax AG

Value adjustments made by the tax authorities

The X AG, located in the canton of Zug, conducted an adjustment at fair value through profit and loss of the book value of its shares in the Y AG in the total amount of CHF 45 Mio. in the fiscal years 1993 and 1995.

Value adjustments made by the tax authorities Bucher Tax AG

Assistance to the Netherlands on group requests

On July 23, 2015 the Dutch tax authorities filed a request for administrative assistance based upon the Double Tax Treaty between Switzerland and the Netherlands to the Swiss Federal Tax Authority (FTA) without mentioning the names of the affected persons.

Assistance to the Netherlands on group requests Bucher Tax AG

Private art collector or commercial art dealer?

From a tax law perspective, the purchase and sale of art objects raises in particular the question of whether the activity of trading in art objects qualifies as commercial art trading or as mere private asset management. If the activity qualifies as commercial trading, the capital gain from the sale, realization or accounting revaluation of the business assets is subject to Individual Income Tax and social security contributions. In the case of private asset management, on the other hand, the profit remains tax-free. For the taxation of capital gains, the distinction between self-employed (= commercial) and dependent (= private asset management) gainful employment is therefore of primary importance. In the past years, the Federal Supreme Court has developed numerous indications for the distinction between dependent and self-employed gainful activity. These indications are shown and explained below on the basis of a current Federal Court decision (9C_606/2022 of June 6, 2023) in the area of art trading.

Private art collector or commercial art dealer? Bucher Tax AG

DTA between Switzerland and Saudi Arabia comes into force

On 18 February 2018, Switzerland and Saudi Arabia signed a double tax agreement (DTA) in the area of taxes on income and wealth and to prevent tax evasion. The DTA came into effect on 1 April 2021 and is applicable as of 1 January 2022.

DTA between Switzerland and Saudi Arabia comes into force Bucher Tax AG

Participation deduction on capital gains

With the ruling from February 22nd 2016, the Federal Court - for the first time - gave its view on the question of how the participation exemption according to Art. 70 Para. 2 lit. B DBG should be interpreted after the new formulation in the CTR II.

Participation deduction on capital gains Bucher Tax AG

International transfer pricing in Switzerland

The topic of transfer pricing has increasingly become the focus of the tax authorities in recent years due to the associated potential for international tax optimization. The term "international transfer pricing" refers to the prices used for intra-group transactions (such as the sale of goods or the licensing of intellectual property rights) between individual tax units of a company or group based in different countries. The key difference to "genuine" third-party prices is therefore that transfer prices are not determined by the market, but by legally independent but de facto interlinked business units and are only used for internal company or tax accounting purposes. Switzerland itself has no transfer pricing regulations, as is the case in many OECED states. On January 23, 2024, the Swiss Tax Conference ("SSK"), in cooperation with the Federal Tax Administration, published a detailed article on the topic of transfer pricing for the Tax Information Dossier for the first time.

International transfer pricing in Switzerland Bucher Tax AG

Super-deduction for R&D; a little-noticed incentive instrument

Thanks to Art. 25a StHG, which was included in the Tax Harmonization Act as part of TRAF as of January 1, 2020, the cantons can now deduct research and development costs by a maximum of 50 percent above the business-related R&D expenses (so-called super-deduction for R&D). This tax incentive instrument was introduced by the federal legislator primarily to create tax incentives in an unbureaucratic way to favor research and innovation in Switzerland. This blog post provides a brief overview of this new tax instrument and points out that the high documentation requirements of the cantonal tax authorities in particular, as well as the unfamiliarity of the instrument among small and medium-sized enterprises (SMEs), meant that it was rarely used in the initial phase.

Super-deduction for R&D; a little-noticed incentive instrument Bucher Tax AG

Tax liability for foreigners with Swiss real estate

Many foreigners own property in Switzerland which they use for vacation purposes. The tax obligations resulting from this ownership in Switzerland are incomprehensible and difficult to understand for the affected property owners. This blog article provides an overview of the tax consequences in Switzerland for a foreign person, i.e. with a (tax) domicile outside of Switzerland, who owns a property as a private asset in Switzerland.

Tax liability for foreigners with Swiss real estate Bucher Tax AG

From crypto trader to securities trader?

Many Swiss people have already invested part of their assets in cryptocurrencies or are planning to invest part of their assets in cryptocurrencies. Trading regularly takes place on online platforms, as this asset class is usually not yet offered by conventional banks. At the time of preparing the tax return, the taxpayer will sooner or later face the question of whether they qualify the trading activities undertaken as simple private asset management (and thus tax-free) or as commercial trading in cryptocurrencies.

From crypto trader to securities trader? Bucher Tax AG

Tax evasion or penalty-free subsequent declaration?

In Switzerland, the ordinary assessment procedure for determining income and wealth taxes is a "mixed" procedure in which the taxpayer must first provide all information and documents to the tax authorities and, in a second step, the tax authorities merely check them or check their plausibility together with the declaration.

Tax evasion or penalty-free subsequent declaration? Bucher Tax AG

DTA between Switzerland and Brazil enters into force

On 3 May 2018, Switzerland and Brazil signed a double taxation agreement (DTA) in the area of taxes on income and to prevent tax evasion and tax avoidance. The DTA entered into force on 16 March 2021 and is applicable as of 1 January 2022.

DTA between Switzerland and Brazil enters into force Bucher Tax AG

Management of real estate from a tax perspective

Many private individuals in Switzerland hold not only the property in which they live, but also other real estate, which they have inherited or purchased in the course of their lives, directly as part of their private assets.

Management of real estate from a tax perspective Bucher Tax AG

Tax-free repayment of hidden capital contributions

According to Art. 20 para. 3 of the Federal Direct Tax Act (FDTA) or the corresponding provisions in the cantonal tax laws, the repayment of contributions, premiums as well as grants to shareholders is to be treated in the same way as the repayment of share capital or nominal capital from an income tax perspective. This means that the repayment is income tax-free for the individual as shareholder and recipient of the payment. In practice, it has long been disputed whether the provision only covers the repayment of openly disclosed so-called capital contribution reserves confirmed by the Swiss Federal Tax Administration for withholding tax purposes by means of Form 170, or whether the provision also applies to so-called hidden capital contributions. In this regard, the Federal Supreme Court has provided clarity in a ruling dated March 17, 2023.

Tax-free repayment of hidden capital contributions Bucher Tax AG

Federal Court Decision: Crediting of Foreign Withholding Taxes for Mixed Companies

On December 2, 2020 (2C_249/2020), the Federal Supreme Court issued a landmark decision in the area of the crediting of non-reclaimable foreign withholding taxes for individuals.

Federal Court Decision: Crediting of Foreign Withholding Taxes for Mixed Companies Bucher Tax AG

From tax secrecy to transparency

The Convention on Mutual Administrative Assistance in Tax Matters (MAC) has been developed by the European Council and the OECD in order to combat international tax evasion and tax fraud.

From tax secrecy to transparency Bucher Tax AG

BEPS 2.0 - Chronology on the taxation of the digital economy

In recent decades, digitalisation and globalisation have allowed companies to optimise their processes and supply chains also from a tax perspective and to distribute profits within cross-border activities in a tax-optimal manner. In response to this development, states intensified their cooperation in the tax area and sought regulations to limit the possibilities of legal cross-border tax optimisation. These efforts were finally brought together at the OECD and translated into concrete measures within the framework of the BEPS project. The goal of the BEPS (Base Erosion and Profit Shifting) project of the OECD and G20 is, among other things, to be able to better capture the digital economy through new taxation rules with the help of a 2-pillar plan. To help you keep track of these developments, we have summarised the most important milestones from BEPS 1.0 to BEPS 2.0 in a chronology below:

BEPS 2.0 - Chronology on the taxation of the digital economy Bucher Tax AG

Holding demerger

The relaxed tax practice for holding company demergers following the Federal Supreme Court ruling of March 11, 2019 (2C_34/2018) has been set out in the new FTA circular no. 5a on restructuring since February 1, 2022. A profit tax-neutral holding company demerger can enable an individual as a shareholder to achieve a tax-optimized private capital gain and is therefore also an interesting tax planning strategy for a succession plan. Our blog post provides an overview of the requirements for the current practice and illustrates the advantages of this new instrument for succession planning.

Holding demerger Bucher Tax AG

Tax deferral for real estate

On 1 April 2008, complainant A. sold a property she had occupied herself in the Canton of Berne at a profit of CHF 5'733'539. However, taxation was deferred due to the acquisition of a replacement property she had used herself in the Canton of Geneva. She then also sold this replacement property in June 2010 and did subsequently not acquire any new property.

Tax deferral for real estate Bucher Tax AG

International transposition

In connection with international corporate restructurings, it is inevitable to deal with the issue of treaty abuse. In Switzerland, in addition to the practice of old reserves and representative liquidation, the legal concept of international transposition is regularly in the spotlight. This subject is presented in more detail in this blog post.

International transposition Bucher Tax AG

Real estate development from a tax perspective

Many private individuals in Switzerland hold not only their house in which they live, but also their investment properties, which they have inherited or purchased, directly as private assets. Depending on what is to be done with the properties, the question arises from a tax point of view which legal ownership structure makes sense for the ownership of properties. This blog post uses a concrete case study to show how a tax-optimized structuring for the development and subsequent sale of a "private" property could look like and which pitfalls have to be considered.

Real estate development from a tax perspective Bucher Tax AG

Safe Haven interest rates for the year 2023

If loans from Swiss companies to their shareholders or other related parties (loan receivables) do not bear sufficient interest, this constitutes a pecuniary benefit to the extent of the underpayment of interest. Such pecuniary benefit may be subject to Swiss withholding tax as well as corporate income taxes.

Safe Haven interest rates for the year 2023 Bucher Tax AG

Taxation of cohabiting couples with children

The current tax system only knows individual taxation in addition to taxation of the marital union. Taxpayers living in cohabitation are taxed individually like the other taxpayers. In addition to the blog post of 14 September 2021 ("Taxation of separated parents"), this article examines the taxation of cohabiting couples with children. The focus is on family law maintenance payments between cohabiting couples with joint children.

Taxation of cohabiting couples with children Bucher Tax AG

Refund of Swiss WHT for persons abroad

The Swiss WHT is a tax levied by the Confederation on the income of movable capital assets (in particular on interest and dividends) at the source of the Swiss debtor. For persons abroad (natural persons or legal entities), the Swiss WHT has a tax character, since the WHT deducted at source in Switzerland can only be refunded to the extent that a double taxation agreement (DTA) between Switzerland and the other state (the so-called country of residence or partner state) of the taxable person abroad also provides for this.

Refund of Swiss WHT for persons abroad Bucher Tax AG

Purchase and withdrawal of funds from the pension fund

A voluntary purchase into the pension fund is interesting for employed persons in many respects: On the one hand, it increases the retirement pension and, depending on the pension fund regulations, also the risk protection against death and disability. Secondly, the purchase can be deducted from taxable income.

Purchase and withdrawal of funds from the pension fund Bucher Tax AG

Deductions for bicycles and public transport

A, who is resident in the Canton of Zurich, makes his way to work every morning with a short 8-minute bicycle ride to the local railway station, in order to then use public transport to the destination station. All in all, the commute takes about 35 minutes. Although using a bicycle, complainant A would also be able to take the bus or even walk to the railway station.

Deductions for bicycles and public transport Bucher Tax AG

Point in time of a land purchase

In the tax period 2013, the married couple A.C. and B.C. had their tax-relevant domicile in the municipality U. in the Canton of Zurich. At the beginning of the same year, they concluded a contract with E. AG and V. AG regarding a condominium property still to be developed in the municipality W. in the Canton of Aargau.

Point in time of a land purchase Bucher Tax AG

Avoiding blind flight in the area of taxes

When asking financial managers about the most crucial risks and dangers in the financial sector, the subject of "taxes" has become increasingly important over the years and now even occupies one of the top positions on the risk scale.

Avoiding blind flight in the area of taxes Bucher Tax AG

Old reserves practice

Profit distributions by a Swiss corporation are subject to 35% Swiss WHT. In the national context, the WHT fulfils a security function and can be refunded or reported - provided that the legally stipulated conditions for this are met.

Old reserves practice Bucher Tax AG

Tax risks Lump-sum expenses

On 20 October 2020 (2C_316/2020), the Federal Supreme Court (FSC) issued a decision regarding the tax treatment of lump-sum expenses in the non-regulatory area. For the first time, it was explained in detail when flat-rate expenses at the level of the company company constitute a business-related expense.

Tax risks Lump-sum expenses Bucher Tax AG

The abolition of the imputed rental value

The abolition of the imputed rental value - an old topic is suddenly on everyone's lips again. For years, this idea has been the subject of tax policy discussions without any real progress having been made. The chance that this relic from the Second World War will be abolished is within reach. In the following we show you the development and consequences of this system change.

The abolition of the imputed rental value Bucher Tax AG

New rules for withholding taxes (as of 01.01.2021)

On 11 April 2018, the Federal Council decided to enact the Federal Law on the revision of the withholding tax on earned income and the associated amendments to the ordinances as of 1 January 2021. The long waiting period is mainly due to the fact that the cantons and concerned economic sectors should be given sufficient time to adapt to the changes.

New rules for withholding taxes (as of 01.01.2021) Bucher Tax AG

Tax consequences of a divorce/separation

The divorce or separation of couples is an emotional and tense issue. Conflicts and disagreements are constant companions, be it with regard to custody, alimony payments for children or the distribution of common assets. However, the tax consequences of a divorce should not be neglected either and addressed as early as possible. In the following, we briefly discuss the issues that should be considered from a tax perspective in the event of separation or divorce. For the cantonal level, the topic is illustrated using the Canton of Lucerne as an example.

Tax consequences of a divorce/separation Bucher Tax AG

New tax rules for gambling winnings

Winners of money games have double reason to rejoice. Not only that they have won a large sum of money with no or a miniscule contribution, but the lucky ones are also allowed to transfer their winnings to the bank without paying (almost any) income and withholding taxes. As of 1 January 2019, the tax rules for money game winnings were amended.

New tax rules for gambling winnings Bucher Tax AG

The 15 BEPS action points explained

On 22 August 2018, the Federal Council adopted the dispatch on the BEPS agreement. But what exactly is the BEPS project? This article explains the 15 BEPS action points.

The 15 BEPS action points explained Bucher Tax AG

Child alimonies are not always deductible

The complainant A, who lives with his wife B in the canton of Fribourg, is the father of their son E, who was born in September 1990. In 2003, A undertook in a maintenance contract to pay a monthly contribution of CHF 15,000 in favour of E until he reached the age of 18 or completed a regular education.

Child alimonies are not always deductible Bucher Tax AG

Tax residence in the canton of origin as a problem for singles

In March 2018 and June 2018, the Federal Supreme Court issued two rulings regarding tax sovereignty and the determination of the tax domicile in intercantonal comparisons, thus confirming its previous Jurisprudence .

Tax residence in the canton of origin as a problem for singles Bucher Tax AG

Luxury class business vehicles

Depending on the acquisition value, business vehicles are treated for tax purposes as either "normal class business vehicles" or "luxury class business vehicles". The following blog post shows the tax consequences of this distinction.

Luxury class business vehicles Bucher Tax AG

Divorce because of the AHV pension?

In terms of taxes and social security, married couples and individuals are treated differently in many respects, which, in purely mathematical terms, is almost exclusively to the detriment of married couples. With the adding up the marital incomes, married couples suffer from the so-called "marriage penalty" as a result of tax progression.

Divorce because of the AHV pension? Bucher Tax AG

Implementation of TRAF in the Cantons

We monitor developments and reactions in the individual cantons regarding the Steuervorlage 17 (SV17) / TRAF.

Implementation of TRAF in the Cantons Bucher Tax AG

What is a tax ruling?

Almost every economic decision made by an individual or a company has tax implications. However, tax law refrains from laying down rules for individual circumstances. Tax law is designed to be open and flexible so that it can be applied to as many economic transactions as possible.

What is a tax ruling? Bucher Tax AG

Tax calculator of the ESTV

The new tax calculator of the Federal Tax Administration (FTA) is online. This allows a quantitative estimate of the tax burden for the current year even before submitting the tax return. In addition, tax burden statistics can be used to determine the ideal location for individual needs.

Tax calculator of the ESTV Bucher Tax AG

Corporate tax planning in change

Within the context of the economy's globalisation, the number and the importance of internationally active companies has risen significantly over the last decades. This development will increase further in the coming years. Beside large companies, SMEs are increasingly becoming active internationally.

Corporate tax planning in change Bucher Tax AG

What you can expect from tax consultants

If asked spontaneously, most people will probably answer the question of what they expect from tax consultants somewhere along the line of: «That he/she helps me to pay as little tax as possible.» The answer is understandable and logical as well, one would think. But is it also right, or is there more to tax consultancy?

What you can expect from tax consultants Bucher Tax AG

Rules applicable to requests for mutual assistance

In recent years, the exchange of tax information has been massively strengthened by expanding existing instruments and creating new ones. The aim of the international community of states is the prevention of tax advantages as a result of the deliberate concealment of tax data of one state from the other state by a taxpayer.

Rules applicable to requests for mutual assistance Bucher Tax AG

Swiss residence permit for NON EU/EFTA citizens

Living and working in Switzerland is still highly attractive to foreigners. In order to achieve this goal, foreigners must overcome many official hurdles. Switzerland has a tightly knit system that regulates and controls the access of foreigners to Switzerland.

Swiss residence permit for NON EU/EFTA citizens Bucher Tax AG

The long overdue abolition of the marriage penalty

"The (long overdue) abolition of the marriage penalty" - since the referendum of 28 February 2016, this expression is known to everyone. Its popularity has not suffered any decline since the lost vote and has been on everyone's lips again, especially since 10 April 2019.

The long overdue abolition of the marriage penalty Bucher Tax AG