«What is it all about»
The revision of basic principles creates a need to adapt
There are numerous legal changes to withholding tax: On 15 December 2016, Parliament passed the Swiss Federal Act on the Revision of Withholding Tax on Earned Income. The Withholding Tax Ordinance was issued in April 2018. On 12 June 2019, the Swiss Federal Tax Administration (FTA) published Circular No. 45 on Withholding tax on employees’ earned income from employment. In addition, ELM Standard 5.0 is expected to be published by Swissdec by the end of 2019, after which payroll software can be reprogrammed. According to information from Swissdec, the definitive ELM version will be released before the end of 2019.
As an employer with employees who are liable to pay withholding tax, you must implement the new legislative basis by the deadline. In order to do so, you should be familiar with the changes and your need to adapt to them. This is the only way for you to provide your employees with the correct information and properly calculate withholding taxes.
The most important at a glance
The Federal Act and the Ordinance contain various relevant changes. Here is an excerpt of them:
«Where you can find important details»
«How you can stay up to date»
«How we can support you»
You should not underestimate the amount of time and effort the changes will involve. Our knowledge advantage can help you in the process, as this topic is our profession and we deal with its legal developments and consequences on a daily basis.
You can also simply outsource your payroll accounting to us in an integrated corporate environment. As withholding tax experts, we will work with you to ensure that everything runs smoothly from day one. We can also implement Abacus Salary/HR in your company on site or support you by providing additional resources during the changeover. As an additional option, you can use our Abacus cloud solution, which correctly reflects your circumstances. We would be pleased to help you in making these decisions and to train your users upon request.
Leader Treuhand/Corporate Support Services Switzerland, PwC Switzerland
Tel: +41 58 792 47 50