Glossary
The words on your Swiss documents, explained
Commune, Sàrl, AVS, impôt à la source, attestation. You will meet these on payslips, official letters and forms, often without a translation. Here is what each one means, and where it matters.
Acquisition tax
The VAT owed by the buyer in Switzerland on a service bought from a foreign business that is not on the Swiss VAT register. An organisation that is not VAT-registered owes it above a threshold: more than CHF 10,000 of such services acquired in a calendar year.Source: Art. 45 para. 2 let. b VAT Act · checked on 27 September 2026
Beneficial owner
The natural person on whose behalf a partner or shareholder ultimately holds shares in a company. They must be reported to the company, which keeps the list up to date. The rule: from 25% of capital or votes: the shareholder notifies the company within one month; the company identifies the beneficial owner and reports to the federal transparency register within one month.Source: art. 4, 9, 10 and 13 LTPM (Transparency of Legal Entities Act) · checked on 27 September 2026
Blocking period after a buy-in
After a buy-in to your pension fund, the resulting benefits cannot be withdrawn as a lump sum immediately, or the tax deduction for the buy-in is lost. The rule: three years: benefits resulting from a buy-in cannot be paid out as a lump sum before this period has expired.Source: art. 79b(3) LPP · checked on 27 September 2026
ELM salary standard
The Swissdec standard for transmitting payroll data from payroll software to social insurance and tax authorities, without re-entry. Standard in force: ELM salary standard 5.0 or later, version 6.0 (edition of 6 March 2026) being the current certification basis.Source: swissdec, Swiss salary standard (ELM) · checked on 27 September 2026
Objection (réclamation)
A written challenge to a tax assessment, sent to the authority that issued it. Deadline: 30 days from notification of the assessment.Source: art. 132 para. 1 DBG/LIFD; art. 48 para. 1 StHG/LHID · checked on 27 September 2026
Opting-out
Waiving any audit of the annual accounts, possible for a small company with the agreement of all its partners. Thresholds and conditions: ordinary audit where two of three thresholds are exceeded in two successive years: balance sheet total CHF 20 million, revenue CHF 40 million, 250 full-time positions; opt-out up to 10 full-time positions, with all shareholders' consent.Source: art. 727(1)(2) and 727a(2) CO · checked on 27 September 2026
Partial taxation of dividends
Dividends from a substantial holding are taxed on only part of their amount, to mitigate the double taxation of the company and the shareholder. The rule: holding of at least 10% of the capital: 70% taxable for direct federal tax; in Geneva, 70% for private assets and 60% for business assets (LHID floor: 50%).Source: Arts. 18b and 20 para. 1bis LIFD, Art. 7 para. 1 LHID, Arts. 19B and 22 para. 2 Geneva LIPP · checked on 27 September 2026
Public-benefit tax exemption
An association or foundation with a public-interest purpose can be exempted from profit and capital tax. The exemption is granted on request and lasts as long as the activity follows the purpose.Source: LIFD, LHID and Geneva LIPM (rsGE D 3 15) · Legal basis : Art. 56(g) of the Federal Direct Tax Act, Art. 23(1)(f) of the Tax Harmonisation Act and Art. 9(1)(f) of the Geneva LIPM: profit (and, cantonally, capital) exclusively and irrevocably dedicated to public service or public utility purposes · checked on 27 September 2026
Quasi-resident
A person taxed at source who does not live in Switzerland but earns most of their income here. They can ask for a subsequent ordinary assessment, and so claim their deductions. The condition: At least 90% of worldwide gross income, including your spouse's, taxable in Switzerland.Source: art. 99a DBG/LIFD and art. 14 OIS · checked on 27 September 2026
Second-pillar withdrawal on leaving Switzerland
Leaving Switzerland permanently allows, under conditions, the cash withdrawal of your vested occupational pension benefits. The rule: withdrawal possible on leaving permanently, with the spouse's written consent; to the EU, Iceland or Norway with compulsory insurance there, the mandatory part stays blocked and the extra-mandatory part is paid; excluded for Liechtenstein.Source: art. 5 and 25f LFLP; OFAS · checked on 27 September 2026
Simplified accounts
Bookkeeping that records income, expenditure and assets, without a full balance sheet and income statement. Available only to sole proprietorships and partnerships, with sales revenue below CHF 500,000 in the last financial year, for sole proprietorships and partnerships; legal entities always keep full accounts. A Sàrl or SA always keeps full accounts.Source: art. 957 CO · checked on 27 September 2026
Sole proprietorship (raison individuelle)
A one-person business with no separate legal personality: its owner is liable for its debts with everything they own. Entry in the commercial register is compulsory from revenue of at least CHF 100,000 in the previous financial year.Source: art. 931(1) CO · checked on 27 September 2026
Subsequent ordinary assessment
Moving from withholding tax to a full tax return, which replaces the deduction with a calculation on your actual situation. It becomes compulsory above an income threshold: CHF 120,000 of gross annual employment income, per person.Source: art. 89 para. 1 let. a DBG/LIFD and art. 9 OIS · checked on 27 September 2026