Fiduciary Glossary
MWST, AHV, BVG, Säule 3a: The key terms around taxes, payroll and accounting: explained in plain language.
Bureaucratic German translated into plain words.
Treuhand (fiduciary work) is full of abbreviations and technical terms. This glossary explains the most important ones briefly and without legalese — so you know what's involved before you come to us.
The explanations are deliberately kept general. What applies in your specific case is something we clarify in a free initial consultation, in your language.
Taxes & MWST
MWST (value-added tax)
A tax on companies' turnover. In Switzerland it becomes mandatory from an annual turnover of CHF 100'000 — below that, registration is voluntary. Depending on the method, it is settled quarterly or half-yearly with the Federal Tax Administration.
Quellensteuer (withholding tax)
A tax deducted directly from wages — typical for foreign employees without a permanent residence permit (C). The employer deducts it and pays it over to the canton. Any overpayment can often be reclaimed through a subsequent correction.
Tax deadlines
The filing deadline for the tax return depends on the canton, in Aargau usually 31 March. Deadline extensions are possible; we file them on request as a paid additional service, so no reminder lands in your mailbox.
Payroll & social insurance
AHV / IV / EO
The first pillar of Swiss pension provision: old-age, survivors' and disability insurance as well as loss-of-earnings compensation. Mandatory for everyone; employer and employee each pay half of the contributions, settled via the compensation fund (Ausgleichskasse).
BVG (pension fund)
The second pillar of occupational pension provision — the pension fund. Mandatory from a certain annual salary; it supplements the AHV (state old-age pension, 1st pillar) so that your usual standard of living is secured in old age. Contributions are shared between employer and employee.
Lohnausweis (salary certificate)
The annual statement of wages and deductions issued by the employer. It is the basis for the employee's tax return and must comply with specific requirements of the tax administration.
Accounting & year-end close
Annual accounts
The closing of the financial year with a balance sheet (assets and liabilities) and an income statement (income and expenses). It is the basis for the company's tax return and for talks with the bank and partners.
Double-entry bookkeeping
Commercial bookkeeping in which every business transaction is recorded on two accounts (debit and credit). It is mandatory for a GmbH and an AG and provides a complete picture of the financial position at any time.
Audit (Revision)
The statutory examination of the annual accounts by an independent body. There is the limited and the ordinary audit; small companies can, under certain conditions, waive it (Opting-out). Whether your business is subject to an audit depends on its size and legal form.
Pensions & private matters
Säule 3a
The tied private pension — the third pillar. Contributions are deductible from taxable income up to an annual maximum amount, and the savings are locked until retirement. One of the most effective legal ways for private individuals to save on taxes.
Legal form
The legal shell of your company: sole proprietorship, GmbH or AG. It determines liability, capital, taxes and administrative effort. The right choice depends on risk, size and plans — we clarify this with you before a company formation.
Eigenmietwert
A notional income (imputed rental value) that homeowners must pay tax on because they live rent-free in their own home. In return, mortgage interest and maintenance costs are deductible. A perennial topic in Swiss tax policy.
About the glossary
Does the glossary replace advice?
No. It gives a quick overview — what applies specifically in your case depends on your situation. That's exactly what we clarify in the free initial consultation.
A term is missing — can you explain it?
Gladly. Call or write to us — we explain terms in German, English, French, Albanian, Bosnian, Turkish and Azerbaijani, without legalese.
Do these details apply to the whole of Switzerland?
The basics yes, but many details and deadlines are cantonal. Our examples refer to Aargau where necessary, for other cantons we clarify this individually.