As 2019 draws to a close, we are already looking ahead to 2020. The end of the year was marked almost exclusively by the debate on the tax bill (STAF), which was finally adopted on 19 May 2019. The effects of the STAF will certainly be something we continue to work on; nevertheless we can expect further significant changes next year. For example, VAT, which is to be completely converted to paperless accounting. Other significant changes are summarised below.

Increase in OASI/IV/EO contributions as of 1 January 2020

Due to the tax bill (STAF), salary contributions to the OASI/IV/EO will increase from 1 January 2020. From 1 January 2020, OASI/IV/EO contributions of 10.55% (previously 10.25%) will be owed on wages. The obligation to contribute to unemployment insurance remains unchanged at 2.2% for annual incomes up to CHF 148,200. Employees and employers must therefore each pay 6,375% (previously 6.225%) in contributions to OASI/IV/EO. On incomes above CHF 148,200, the solidarity contribution of 1.0% is owed on a pro rata basis.

Also affected are the OASI/IV/EO contributions of self-employed persons, which will be increased from the current 9.65% to 9.95%.

Introduction of the Gender Equality Act

According to the Federal Department of Justice and Police (FDJP), the new Gender Equality Act will come into force on 1 July 2020. The law obliges companies with more than 100 employees to conduct an equal pay analysis every four years and have it reviewed by an independent body. The first analysis must be available by 2021. The review of the analysis can be carried out by an auditing company licensed under the Auditing Act, such as Blaser Treuhand AG, with additional training. The employer must inform the employees in writing of the results of the equal pay analysis within one year of the audit report. Listed companies additionally publish the result of the analysis in the notes to the annual accounts. Employers in the public sector must publish the results of the analysis and the review.

However, this is not the only measure to stabilise the OASI. In order to maintain the benefit level of the old-age pension scheme, an increase in value-added tax in 2021 from the current 7.7% to 9.2% is planned.

The STAF enters into force on 1 January 2020

Following its adoption on 19 May 2019, the STAF will enter into force at the beginning of 2020 and replace the tax regimes that are no longer tolerated internationally (holding companies, mixed companies, domiciliary companies and Swiss Finance Branch). The cantons were forced to react to the adoption and have adjusted their corporate profit tax rates to compensate for the elimination of the tax regimes. Each canton is at different stages of implementation and we provide an overview of the profit tax rates of the individual cantons (as of 25 November 2019). It should be emphasised that the canton of Bern ranks last.

The QR-bill will be introduced in June 2020

As part of the digitalisation process, SIX will introduce the QR-bill in Swiss payment traffic on 30 June 2020. The QR-bill is based on the conversion of Swiss payment traffic to the new ISO formats. The aim is to completely replace the previous payment slips, but the use of the orange and red payment slips will continue to be possible in an initial transition phase. The exact end date for the use of the previous payment slips has not yet been defined. However, the individual companies will need to adapt their ERP software accordingly so that they can process the new payment slips.

New official values – general revaluation in the Canton of Berne

The last valuation of land, real estate and hydropower was carried out in the Canton of Berne on 1 January 1999. Therefore, the Cantonal Parliament ordered a general revaluation of non-agricultural land in its March 2017 session. The aim of the general revaluation is that the official values again correspond to between 70-100% of the market value of the real estate and thus to the legal requirements.

The new official values are calculated automatically. Only in a few specific and precisely defined individual cases will the tax administration carry out an on-site inspection.

The new official values will be sent to the taxpayers between May and September 2020 as a separate ruling with an objection period of 30 days.

The new and presumably higher official value will mainly affect wealth tax (cantons and municipalities) and real estate tax (municipalities).

New statute of limitations

The new statute of limitations will come into force on 1 January 2020. Among other things, it extends certain limitation periods and establishes new rules for waiving the statute of limitations. For example, claims for damages for personal injury will now become time-barred after 20 years at the latest. For claims arising from tort or unjust enrichment, a relative limitation period of three years will apply from 2020.

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