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Switzerland

Law and regulation of Covid-19 tax relief in Switzerland

Table of contents
  1. Value Added Tax
  2. Corporate Income Tax
  3. Social Security Contributions or Payroll Tax
  4. Other relief measures
  5. Additional comments
Switzerland
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Value Added Tax

  • No interest for late tax payment from 20.03.20 to 31.12.20
  • Interest in favor of the taxpayer remains at 4.0%
  • Filing duties remain in principle unaltered
  • Tax administration has generally stopped local VAT audits. If possible, the audit will be conducted remotely.
  • In case of input VAT credits, taxpayers have the possibility to file a request for accelerated refund. 

Corporate Income Tax

Federal level

No interest for late tax payment from 01.03.20 to 31.12.20 for Federal Income Tax becoming due in that period

Cantonal level

Specific measures may vary from canton to canton. Please find below the measures currently adopted by the cantons of Geneva and Zurich.

Geneva

  • Deadline to submit 2019 tax return extended to 31.05.20
  • No late tax payment or compensatory interest will be due from 23.03.20 to 31.12.20 (except in certain cases such as tax reassessments and fines)
  • Taxpayers may unilaterally adjust or postpone their provisional tax invoices for the tax period 2020. The above-mentioned waiver of interest applies.
  • A facilitated procedure shall be made available allowing to request, within 30 days of a decision’s notification, a payment term extension in up to 8 monthly instalments

Zurich

  • Taxpayers may request an adjustment of their provisional tax invoices for the tax period 2020
  • Taxpayers may request deferrals and payment plans for tax payments which are due (tax administration should treat such requests generously)
  • Taxpayers may request reinstatement of filing deadlines (in particular for the 30-day objection period), COVID-19 crisis being a valid justification
  • Interest for late tax payments shall be reduced to 0.25% (instead of 4.5%) for the period 1 May – 31 December 2020

Social Security Contributions or Payroll Tax

  • If a taxpayer (e.g. an employer) is granted a payment term extension for social security contributions due to COVID-19, no interest for late payment will be due NB: Applies to AVS/AHV, AI/IV, AC/ALV, APG/EO

Other relief measures

  • No interest for late tax payments from 20.03.20 to 31.12.20 for certain customs duties and special taxes (e.g. Taxes on beer, alcohol, tobacco, mineral oils).

Additional comments

  • Extension of the suspension of certain procedural deadlines set by the law or by the courts for certain types of taxes when relevant procedural legislation provides for a deadline suspension during the Easter period (e.g. VAT, Federal Withholding Tax, Federal Stamp Duty).