Why a Swiss tax glossary
Switzerland has a unique tax and accounting system with specific terminology that varies across its four national languages and English. For those relocating, starting a business or studying taxation, the language barrier is often the first obstacle: the same concept has different names in Zurich, Geneva, Lugano and in international documents.
This glossary collects the most commonly used terms in daily practice — from tax returns to business accounting, from VAT to social contributions — with translations in four languages (IT, DE, FR, EN) and an accessible definition that clarifies the meaning within the Swiss context.
The goal is not to replace a tax law manual, but to provide a quick-reference tool for navigating Swiss fiscal language, avoiding misunderstandings and communicating precisely with authorities, fiduciaries and business partners.
General accounting
The fundamental accounting terms every Swiss entrepreneur and taxpayer needs to know, from bookkeeping to the annual financial statements.
| IT | DE | FR | EN |
|---|---|---|---|
| Bilancio | Bilanz | Bilan | Balance sheet |
| Conto economico | Erfolgsrechnung | Compte de résultat | Income statement |
| Piano dei conti | Kontenplan | Plan comptable | Chart of accounts |
| Partita doppia | Doppelte Buchhaltung | Comptabilité en partie double | Double-entry bookkeeping |
| Chiusura annuale | Jahresabschluss | Clôture annuelle | Annual closing |
Bilancio
A statement presenting the financial position of a business at a given date, with assets (property and receivables) and liabilities (debts and equity). In Switzerland it is governed by Art. 957–963 CO and must be prepared annually by all companies registered in the commercial register.
Conto economico
A document summarising revenues and expenses for a financial year, determining net profit or loss. Together with the balance sheet, it forms the core of the mandatory annual accounts under the CO. It must be presented in a stepped format separating operating and financial results.
Piano dei conti
A structured list of all accounting accounts used by the business, organised by classes (assets, liabilities, revenues, expenses). In Switzerland the standard reference is the SME chart of accounts (KMU-Kontenrahmen), adopted by most small and medium enterprises.
Partita doppia
An accounting system where every transaction is recorded with at least one debit and one credit of equal amount. It is mandatory for all businesses with annual revenues exceeding CHF 500,000 (Art. 957 CO). Sole proprietorships below this threshold may use simplified accounting.
Chiusura annuale
The process of finalising accounts at year-end: adjusting entries, depreciation, provisions, tax calculations and preparation of final documents (balance sheet, income statement, notes). The legal deadline for submission is 6 months from the end of the financial year.
Direct taxes
Terms relating to income and wealth taxes, the pillars of the three-level tax system (Confederation, Canton, Municipality).
| IT | DE | FR | EN |
|---|---|---|---|
| Imposta federale diretta (IFD) | Direkte Bundessteuer (DBSt) | Impôt fédéral direct (IFD) | Federal direct tax |
| Imposta cantonale e comunale | Kantons- und Gemeindesteuer | Impôt cantonal et communal | Cantonal and municipal tax |
| Imposta sulla sostanza | Vermögenssteuer | Impôt sur la fortune | Wealth tax |
| Dichiarazione dei redditi | Steuererklärung | Déclaration d'impôt | Tax return |
| Tassazione alla fonte | Quellensteuer | Impôt à la source | Withholding tax |
Imposta federale diretta (IFD)
Income tax levied by the Confederation with progressive rates up to 11.5% for individuals and a flat rate of 8.5% for legal entities. It is governed by the LIFD (Federal Act on Direct Federal Tax) and accounts for approximately one third of a taxpayer's total tax burden.
Imposta cantonale e comunale
Income and wealth taxes levied by the Canton and Municipality of domicile. Rates vary enormously across the 26 Cantons: the tax burden in Zug can be half that in Neuchâtel. The municipal multiplier adds a further layer of differentiation even within the same Canton.
Imposta sulla sostanza
A cantonal and municipal tax calculated on the taxpayer's net wealth (assets minus debts). Switzerland is one of the few OECD countries maintaining a wealth tax. Rates are generally progressive and vary by Canton, with exemptions ranging from CHF 50,000 to CHF 200,000.
Dichiarazione dei redditi
The annual document by which a taxpayer declares income, deductions and wealth to the tax authorities. In Switzerland it must be filed by 31 March of the following year (with extension possible). Married couples file jointly; minors with their own income file separately.
Tassazione alla fonte
A tax collection system where the tax is deducted directly by the employer from the payslip. It applies to foreign workers without a C permit (and C permit holders with gross income ≥ CHF 120,000 since 2021). Rates depend on Canton, marital status and number of children.
VAT (Value added tax)
Terms relating to Switzerland's most important indirect tax, administered by the FTA (Federal Tax Administration).
| IT | DE | FR | EN |
|---|---|---|---|
| IVA / Imposta sul valore aggiunto | MWST / Mehrwertsteuer | TVA / Taxe sur la valeur ajoutée | VAT / Value added tax |
| Imposta precedente | Vorsteuer | Impôt préalable | Input tax |
| Metodo di rendiconto effettivo | Effektive Abrechnungsmethode | Méthode effective | Effective accounting method |
| Metodo delle aliquote saldo | Saldosteuersatzmethode | Méthode des taux de la dette fiscale nette | Flat-rate method |
IVA / Imposta sul valore aggiunto
An indirect consumption tax levied at every stage of the production and distribution chain. In Switzerland the standard rate is 8.1% (since 2024), with reduced rates of 2.6% (essential goods) and 3.8% (accommodation). Registration becomes mandatory when annual turnover exceeds CHF 100,000.
Imposta precedente
The VAT paid on purchases of goods and services used for taxable activities. It can be deducted from VAT collected on sales, so that the tax only applies to the actual value added. The right to deduction requires a compliant invoice with the supplier's VAT number.
Metodo di rendiconto effettivo
The standard VAT reporting method where you declare the VAT actually collected and deduct the input tax actually paid. It is mandatory for businesses with turnover exceeding CHF 5,005,000 or annual tax liability exceeding CHF 103,000.
Metodo delle aliquote saldo
A simplified method where a flat rate (varying by sector, from 0.1% to 6.5%) is applied directly to turnover, without deducting input tax. Available for businesses with turnover up to CHF 5,005,000 and tax liability up to CHF 103,000. It greatly simplifies VAT management for SMEs.
Corporate and commercial law
Terms relating to the most common legal forms and corporate obligations for those operating in Switzerland.
| IT | DE | FR | EN |
|---|---|---|---|
| Sagl (Società a garanzia limitata) | GmbH (Gesellschaft mit beschränkter Haftung) | Sàrl (Société à responsabilité limitée) | LLC (Limited liability company) |
| SA (Società anonima) | AG (Aktiengesellschaft) | SA (Société anonyme) | Ltd / Corp (Public limited company) |
| Ditta individuale | Einzelunternehmen | Entreprise individuelle | Sole proprietorship |
| Registro di commercio | Handelsregister | Registre du commerce | Commercial register |
Sagl (Società a garanzia limitata)
The most common corporate form among Swiss SMEs, with a minimum share capital of CHF 20,000 (fully paid up). Partners' liability is limited to their subscribed shares. It is governed by Art. 772–827 CO and requires registration in the commercial register and a notarised deed of incorporation.
SA (Società anonima)
A corporation with minimum share capital of CHF 100,000 (of which at least CHF 50,000 paid up). Shareholders are liable only up to the value of their subscribed shares. It is the legal form chosen for larger companies and those planning to bring in external investors.
Ditta individuale
The simplest form of self-employment, with no legal personality separate from the owner. Registration in the commercial register is mandatory only with revenues exceeding CHF 100,000 per year. The owner is personally liable with all their assets for business debts and income is reported on the personal tax return.
Registro di commercio
A public cantonal register collecting essential information on all registered businesses: company name, registered office, purpose, governing bodies, capital. Registration is mandatory for SAs, Sagls and sole proprietorships with revenues > CHF 100,000. Changes (office relocation, capital increase, director appointments) must be notified within 30 days.
Digital accounting and compliance
Terms related to the digitalisation of accounting processes and electronic archiving requirements in Switzerland.
| IT | DE | FR | EN |
|---|---|---|---|
| Archiviazione digitale conforme | Gesetzeskonforme digitale Archivierung | Archivage numérique conforme | Compliant digital archiving |
| Fattura QR | QR-Rechnung | Facture QR | QR invoice |
| OCR (Riconoscimento ottico dei caratteri) | OCR (Optische Zeichenerkennung) | OCR (Reconnaissance optique de caractères) | OCR (Optical character recognition) |
| Firma elettronica qualificata (FEQ) | Qualifizierte elektronische Signatur (QES) | Signature électronique qualifiée (SEQ) | Qualified electronic signature (QES) |
Archiviazione digitale conforme
Electronic storage of accounting documents according to the requirements of the Commercial Bookkeeping Ordinance (OLC/GeBüV). Documents must be retained for 10 years, in a non-modifiable format, with guaranteed integrity and readability. Storage on non-rewritable media (WORM) or with a qualified digital signature meets the requirements.
Fattura QR
The Swiss invoicing standard that replaced the orange and red payment slips from 30 September 2022. The QR invoice contains all payment information in a standardised Swiss QR code, readable with a banking app or scanner. It is mandatory for all payments through the Swiss banking system.
OCR (Riconoscimento ottico dei caratteri)
Technology that converts document images (invoices, receipts, bank statements) into editable, classifiable digital text. In modern accounting solutions like AccountEX, OCR is combined with artificial intelligence to automatically extract amounts, dates, suppliers and account codes, reducing manual entry by 90%.
Firma elettronica qualificata (FEQ)
The highest level of electronic signature under the Federal Act on Electronic Signatures (FiEle/ZertES), equivalent to a handwritten signature. It requires a digital certificate issued by a recognised certification service provider (e.g. SwissSign, QuoVadis). It is required for certain corporate documents and for substitute digital archiving.
Tips for using this glossary
- Bookmark this page: it's a quick-reference tool to use whenever you encounter an unfamiliar Swiss tax or accounting term
- Use the translations to communicate with authorities in your Canton's official language: correct terminology speeds up procedures and reduces misunderstandings
- If you're moving to Switzerland, start with general accounting and direct tax terms — these are the ones you'll encounter first in daily life
- For professionals: multilingual equivalences are essential when working with clients or partners in other linguistic Cantons or with international offices
- AccountEX handles accounting in all Swiss languages with localised terminology: reports can be generated in the recipient's language, eliminating language barriers
Simplify your Swiss accounting
AccountEX handles VAT, QR-invoices and bookings with AI. Start for free.
Start Free
Social insurance
The mandatory contributions forming the Swiss social safety net, from the 1st pillar to the 3rd pillar.
AVS/AI/IPG
The three 1st pillar contributions: Old-Age and Survivors' Insurance (OASI), Disability Insurance (DI) and Income Compensation (IC, covering military service, maternity and paternity leave). The total rate is 10.6% of gross salary, split equally between employer and employee (5.3% each).
LPP / Previdenza professionale
The 2nd pillar of the Swiss pension system, mandatory for employees with annual salary above the entry threshold (CHF 22,050 in 2026). Contributions — split at least equally between employer and employee — are paid to a pension fund and accumulate retirement savings that finance a pension or lump sum at retirement.
LAINF / Assicurazione infortuni
Mandatory insurance for all employees covering occupational accidents (BU), non-occupational accidents (NBU) and occupational diseases. The BU premium is paid by the employer; the NBU premium is generally paid by the employee. The insurer is SUVA for industrial sectors, or a private insurer for others.
Pilastro 3a
Tax-advantaged individual tied pension provision. Contributions are tax-deductible up to CHF 7,056 per year for employees with a pension fund (or up to 20% of net income, max CHF 35,280, for self-employed without a 2nd pillar). Capital is locked until 5 years before retirement age, with exceptions (home purchase, starting a business, leaving Switzerland).