Nearly every year brings administrative changes for business owners and managers. The five most likely to be felt by Swiss SMEs this year are set out below.
1. Social insurance taxes
The three main ones (AVS, AI, APG) remain the same in 2019. Together they come to 10.25% of salary, of which half is deducted from the salary amount.
Unemployment insurance of 2.2%, with half deducted from salary, remains the same too.
Deductions for payments made to families have risen in some cantons so these will need to be updated. A list of rates for 2019 for each canton are available here.
Some cantons have other small salary based taxes and charges. In any case your compensation fund will update the rates and send you a bill.
Compulsory salary based pension deductions change in 2019. The salary trigger point requiring pension deductions rises from 21,150 to 21,330 francs, and the amount that can be deducted from a salary before calculating the payment rises from 24,675 to 24,885 francs.
The pension percentages are now applied to a minimum sum of 3,555 francs for annual salaries from 21,330 to 28,440 francs, and a minimum sum of 60,435 francs for salaries above 85,320 francs. For salaries in between, the figure used is the salary minus 24,885 francs.
The rates for 2019 are the same as for 2018. The big VAT change in 2019 affects foreign based companies selling goods in Switzerland. Those that earned more than 100,000 francs of revenue globally in 2018 must register for Swiss VAT if they sell goods to Swiss residents. Click here for more information.
In Switzerland, taxation varies by canton and municipality. Changes in 2019 depend on where your business is based. One big change in 2019 is the company tax rate in the canton of Vaud. From 1 January 2019, the canton’s company rate falls from 21.37% to 13.79%, a change decided by a cantonal vote in 2016.
There are systems designed for Swiss administration that automate many of these changes. It is possible to test cloud-based Winbiz Accounting at no cost. And, it has an English version.
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