Switzerland - branch office or local GmbH

[bountymounty]

The authorities in the other jurisdiction (e.g., Montenegro, as in your example) will cooperate with Switzerland.
See Sections 25–26 of the DTA.

okay I see.

It’s probably smarter to shut down the company before officially leaving the country, and just gradually reduce the income over time, like it’s done everywhere else.

You can easily start that process a year in advance and keep it going for a while after you’ve moved, slowly using up the retained earnings. Businesses shut down all the time for all kinds of reasons, maybe the market change, maybe you lost interest, maybe the product just isn’t profitable anymore. That’s totally normal.

As long as the timeline looks organic and the numbers make sense, nobody’s going to ask too many questions.

 

[daniels27]

What if I terminate my apartment lease, and on the same day I hand over the keys, I stop by the immigration office and tell them I’m leaving. Then they can’t really do anything. The company has a Swiss director (if we keep the Swiss example, it could also be Germany or France, same same) and everything, I just don’t see what they could actually do if the timing is spot on.

Sorry OP if this isn't relevant for you.

It works like this. They will get your 2025 company tax return (financial statements). Then, they will inform your municipality about the company valuation (for wealth taxes) and receive notice that you are deregistered. Then, the audit will immediately follow. It will be in the company location and unless you can convince them that your director is able to keep the company running without you, they will close the company and charge exit tax. It
Note that the company has to pay, not you.

 

[jorge]

company and charge exit tax. It
Note that the company has to pay, not you.

Did I just catch a loophole here on how to slip out of the mess?

 

[daniels27]

It’s probably smarter to shut down the company before officially leaving the country, and just gradually reduce the income over time, like it’s done everywhere else.

You can easily start that process a year in advance and keep it going for a while after you’ve moved, slowly using up the retained earnings. Businesses shut down all the time for all kinds of reasons, maybe the market change, maybe you lost interest, maybe the product just isn’t profitable anymore. That’s totally normal.

The problem there is that you will have issues if you stay running your offshore company from Switzerland. I mean it works if you just shut down slowly.

But otherwise, see my comment above. You can shut down when find but I would advise to have somebody else as director from as soon as possible. Your mother etc. normally does the job. Or you ask some other guys here for help. You will need to pay then normal salary like 8k CHF per year for 20% job.

 

[daniels27]

@bountymounty you badge is much appreciated. I am happy that I could improve my behaviour on OCT.

 

[daniels27]

Did I just catch a loophole here on how to slip out of the mess?

No, as the exit tax only taxes goodwill. If you can afford to let your company go bankrupt, there most likely is no goodwill.

If you are a rideshare driver and operate as a GmbH, you basically just get salary. Once you stop driving, revenue stops.

If your company developed a patent cashing in royalties in the order of 3M annually for another 10 years, the goodwill is roughly (it is less due to interests) 30M.

Check here
https://www.fsp.li/application/file...vue_Felder_Giezendanner_Exitbesteuerung-1.pdf

 

[ImKing]

What if you like me have a simple company ( AG) in Switzerland and make some revenue but the company has no real acitvity nor do it have customers others than the same one all the time where it gets his revenue from? I assume no Goodwill and No exit tax?

 

[daniels27]

What if you like me have a simple company ( AG) in Switzerland and make some revenue but the company has no real acitvity nor do it have customers others than the same one all the time where it gets his revenue from? I assume no Goodwill and No exit tax?

You also live there?

Well, first of all, there always is some goodwill. Some hidden reserves in the books. Returning customers sounds like they will come back again.

But you get your yearly company valuation from the Steueramt each year. If you take this number and deduct the assets, you have the default goodwill which will serve as base for negotiation.

In any case you'll be better off emptying your company prior to a move. Or after if you can convince some Swiss dudes to play director for three years.