A
Accounting entry (journal entry)
Recording of a financial transaction in the accounting journal using the double-entry principle (debit = credit). Each transaction (invoice, payment, salary, etc.) generates at least one entry. The nu...
Read the full definition →AG/SA (Corporation)
Swiss legal form with legal personality, regulated under Art. 620-763 CO. Minimum share capital: CHF 100,000 (at least CHF 50,000 or 20% paid up at incorporation). Shareholders are not personally liab...
Read the full definition →Annual closing (year-end closing)
Annual accounting operation consisting of closing the books at a given date (usually December 31) to prepare the balance sheet, income statement, and notes. Annual closing is mandatory for all compani...
Read the full definition →Audit (statutory audit)
Verification of annual financial statements by an independent body. In Switzerland, there is an ordinary audit (mandatory for companies with more than 250 employees or exceeding certain thresholds) an...
Read the full definition →B
Balance sheet
Accounting document presenting the company's financial position at a given date. Assets (what the company owns: cash, receivables, fixed assets) equal liabilities (equity + debts). The balance sheet i...
Read the full definition →BVG/LPP (Occupational Pension / 2nd Pillar)
Second pillar of the Swiss social security system, also known as occupational pension. The BVG is mandatory for employees earning more than CHF 22,680 per year (2026 entry threshold). Contributions va...
Read the full definition →C
CO (Swiss Code of Obligations)
Part of the Swiss Civil Code governing contract law, corporate law, and accounting law. The CO sets out accounting obligations (Art. 957-963), valuation rules (Art. 960-960e), legal forms of companies...
Read the full definition →Commercial register (CR)
Public register maintained by each canton listing companies and their essential information (company name, registered office, purpose, governing bodies, capital). Registration is mandatory for LLCs, c...
Read the full definition →Company domiciliation
Service allowing a company to use a professional address as its registered office without physically occupying premises. Domiciliation generally includes mail reception and management, a nameplate, an...
Read the full definition →Coordinated salary
Portion of the annual salary subject to occupational pension (BVG). It equals the gross annual salary minus the coordination deduction (CHF 25,725 in 2026), up to a maximum of CHF 88,200. BVG contribu...
Read the full definition →Corporate income tax
Tax levied on the net profit of legal entities (LLCs, corporations). It is collected at three levels: federal (8.5% of net profit), cantonal, and municipal (variable). The effective total rate ranges ...
Read the full definition →D
DI (Disability Insurance)
Branch of Swiss social insurance covering persons who become disabled. The DI contribution rate is 1.4% of gross salary, split between employer and employee. DI is part of the first pillar together wi...
Read the full definition →F
Family allowances (FA)
Benefits paid to parents to partially offset the cost of raising children. Funding is entirely borne by the employer. The rate varies by canton: Geneva 2.45%, Vaud 2.06%, Valais 2.3%. Allowances are a...
Read the full definition →G
GmbH/Sarl (Limited Liability Company)
Swiss legal form with legal personality, regulated under Art. 772-827 CO. Minimum capital: CHF 20,000 (fully paid up at incorporation). Members are not personally liable for the company's debts (liabi...
Read the full definition →I
Income statement (profit and loss account)
Financial statement presenting the revenues and expenses of a company over a financial year. The difference between revenues and expenses gives the net profit (or net loss). The income statement is ma...
Read the full definition →L
LEO (Loss of Earnings Compensation)
Insurance scheme compensating loss of income during military service, civil service or maternity. The LEO rate is 0.5% of gross salary (0.25% employer + 0.25% employee).
Read the full definition →N
NTRM (Net Tax Rate Method)
Simplified VAT accounting method allowing small businesses (turnover < CHF 5,024,000 and tax < CHF 108,000/year) to calculate VAT owed using a flat rate per industry, without individually deducting in...
Read the full definition →O
OASI (Old Age and Survivors' Insurance)
First pillar of the Swiss social security system. OASI is a mandatory social insurance providing old-age and survivors' pensions. The contribution rate is 8.7% of gross salary, split equally between e...
Read the full definition →Odoo
Open-source, modular business management software (ERP) covering accounting, invoicing, project management, CRM, human resources, etc. AX-Fiduciaire is an Odoo partner and uses this solution for clien...
Read the full definition →Opting-out (waiver of limited audit)
Option for SMEs with fewer than 10 full-time equivalent employees to waive the limited audit of their annual financial statements. The waiver must be unanimously accepted by all members (LLC) or share...
Read the full definition →P
Pay slip (salary statement)
Document provided monthly to each employee detailing gross salary, deductions (OASI, DI, UI, BVG, NBU, withholding tax if applicable) and net salary paid. Pay slips must be retained for 10 years. The ...
Read the full definition →Pillar 3a (Tied pension provision)
Third pillar of Swiss social security, voluntary and tax-advantaged. Contributions are deductible from taxable income within legal limits: CHF 7,056/year for employees with a 2nd pillar (2026), CHF 35...
Read the full definition →S
Social charges
All mandatory contributions deducted from salaries in Switzerland: OASI/DI/LEO, UI, accident insurance (UVG), BVG, family allowances, etc. Total employer contributions represent approximately 15-22% o...
Read the full definition →Sole proprietorship
The simplest legal form in Switzerland for a single entrepreneur. No minimum capital required. Registration in the commercial register is mandatory from CHF 100,000 in annual turnover. Note: the entre...
Read the full definition →T
Tax optimization
Set of legal strategies aimed at minimizing the tax burden of a company or individual. In Switzerland, this includes the choice of canton, dividend vs. salary policy, BVG buy-ins, optimal depreciation...
Read the full definition →U
UI (Unemployment Insurance)
Mandatory social insurance funding unemployment benefits. The rate is 2.2% of gross salary (1.1% employer + 1.1% employee) up to a ceiling of CHF 148,200 per year. A solidarity surcharge of 1% applies...
Read the full definition →UVG (Accident Insurance)
Mandatory insurance covering occupational accidents (BU, at the employer's expense) and non-occupational accidents (NBU, at the employee's expense from 8h/week). Rates vary by industry and insurer. On...
Read the full definition →V
VAT (Value Added Tax)
Indirect consumption tax levied at each stage of the production chain. In Switzerland, three rates apply in 2026: standard rate 8.1% (majority of goods/services), reduced rate 2.6% (food, medication, ...
Read the full definition →VAT return
Document to be submitted periodically to the Federal Tax Administration (FTA) indicating the turnover, VAT collected, and deductible input tax. Returns are generally quarterly (some sectors: semi-annu...
Read the full definition →W
Withholding tax (tax at source)
Method of collecting income tax applied to foreign workers without a C permit in Switzerland. The employer deducts the tax directly from gross salary according to cantonal scales (varying by status, n...
Read the full definition →Work permit (residence permit)
Document issued by cantonal authorities authorizing a foreign national to work in Switzerland. Main types: L permit (short-term, max 1 year), B permit (annual, renewable), C permit (settlement, indefi...
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