With the introduction of the new salary certificate, the same form is now used throughout Switzerland. While the new certificate is more detailed and transparent than the previous one, making the transition is not without its problems. PwC can help you deal with the whole range of practical issues associated with the new form even once you have made the change.
The new salary certificate will be compulsory in most cantons from fiscal 2007 onwards. The use of the new form is compulsory for the certification of salaries, and voluntary for pension purposes. As an exception, employers can use the existing salary certificate form for the 2007 fiscal year if certificates for 2007 salaries have to be issued in the 2007 calendar year, or if there are technical reasons preventing the introduction of the new certificate in time for fiscal 2007 (2007 salaries).
The specimen regulations issued by the tax authorities are designed to give companies an idea of how to formulate expense regulations. However, they are not complete and do not cover the entire range of possible expenses.
Depending on the company, these sample regulations may contain only 35% to 90% of all possible expenses. One example of an expenses not mentioned in the regulations is company mobile phones. While point 72 of the instructions accompanying the new salary certificate states that the use of mobile phones for business purposes is not a taxable salary component, it mentions only the use of the phone, not the monthly subscription. This means that the expense regulations must contain a provision to ensure that this point is regulated properly.
Also covered are employer fringe benefits and all types of expenses that an employee could claim via an expense sheet or accounts payable. An example: an employee purchases technical literature for use on the job at his own expense and makes a claim on his expense sheet. If this type of benefit or expense is not covered in the expense regulations, it constitutes a component of the salary.
You will find contact details and more information on the challenges posed by the new salary certificate in the right-hand column.
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