2025 regulatory changes: key information for Swiss SMEs

2025 will be marked by significant legislative changes, with particular focus on updates to value added tax (VAT), the prevention of fraudulent bankruptcies and social insurance policies. Here’s what’s new for your SME and how to prepare.

VAT reform: greater simplicity, advanced digitalisation and increased flexibility.

Annual invoicing

• From 1 January 2025, you can apply for annual VAT settlement if your annual turnover does not exceed CHF 5,005,000.
• The application must be submitted via the Federal Tax Administration’s (FTA) electronic portal by the end of February 2025 at the latest. You will also receive feedback directly through the portal.
• The annual return must be filed and paid by the end of February of the following year.
• Note: advance payments remain in place and must be made quarterly or half-yearly, based on the previous year’s tax assessment.

Tip: annual invoicing can be beneficial for businesses with stable cash flow. Check whether the change is worthwhile for you and clarify the details with your fiduciary in good time.

Net tax rate method

• It is now permitted to use more than two net tax rates, provided the activities correspond to at least 10% of total taxable turnover.
• The provisions on mixed sectors and the 50% rule no longer apply.
• Important: if you switch from the effective method to the net tax rate method, input tax corrections will be required.

Mandatory digital filing

• From 1 January 2025, all VAT-registered businesses must submit their VAT returns electronically via the FTA’s portal. This rule applies to all businesses, regardless of size or sector.
• Paper returns will be abolished entirely. Businesses must ensure they have the technical infrastructure needed to meet these requirements.
• There is no transition period. If your accounting has so far been handled manually or has not been digitalised, it’s worth switching to suitable software in good time.

We recommend checking straight away whether the accounting software you currently use is compatible with the ePortal. You can use the ePortal’s trial options to get a head start on moving your processes to digital accounting. More information and instructions are available directly from the FTA.

Fraudulent bankruptcy: stricter rules for greater clarity

• Commercial registry offices are now entitled to request that auditors renew their waiver if there are grounds for suspicion.
• New: public-law claims, such as tax or social security debts, are now applied consistently in the event of insolvency.

Recommendation: keep your accounts and records in good order so you can spot any issues early and be ready to respond to requests for information.

Social insurance: higher benefits, adjusted thresholds

New amounts from 2025

• The marginal income threshold will rise to CHF 2,500.
• Child allowances will increase to CHF 215 and education allowances to CHF 268. Employers must apply these changes automatically.
• The BVG coordination deduction will be raised to CHF 26,460 and the maximum annual salary threshold to CHF 90,720.
• New: the minimum AHV/IV/APG contribution rises to CHF 530.
  AHV/IV pensions will be increased by 2.9%.

Tax deductions and back payments

• The maximum tax deduction for occupational pension schemes is CHF 7,258. Without affiliation, the amount is CHF 36,288.
• From 2025, it will be possible to make back payments into pillar 3a retroactively, for up to 10 years.

We recommend planning pillar 3a back payments carefully to make the most of the tax benefits. It’s worth consulting your fiduciary to work out the best strategy for your business.

Further changes and digitalisation

• The minimum interest rate for occupational pensions will remain fixed at 1.25% in 2025.
• New rules on subsidies: funds recognised as subsidies will result in a reduction of input tax.
• Emission rights: the purchase of CO₂ certificates between Swiss companies will in future be subject to acquisition tax.
• Digitalisation: from 2025, loss-of-earnings compensation can be requested online.

Recommendation: make sure your accounting software and processes are ready for digitalisation. This will save you time and reduce manual errors.

Conclusion: plan ahead and prepare properly

The legislative changes planned for 2025 will bring in a number of innovations that affect small and medium-sized enterprises. To prepare as well as possible, it’s worth considering the following points:

• Is the annual VAT return beneficial for your business?
• Could you benefit from the new net tax rate system?
• Have the child and education deductions in your business been updated correctly?
• Are you planning to make back payments into pillar 3a?
• Is your accounting software ready for the new online requirements?