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Old 30.08.2020, 21:41
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Individual tax for CEO of dormant company

I setup a company (GmBH/Sarl) a few years ago which made no revenues to date and donít plan to do any in the future.

Main reason for not focusing on my company was that I have a full time job with another global bank and didnít find much time to spare.

Now the question is: should I declare my personal earnings from my day job as my companies revenue? Alternatively, should I mention about my company in my individual tax filing?

Many thanks in advance if anyone can throw some light on this.
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Old 31.08.2020, 10:24
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Re: Individual tax for CEO of dormant company

You and the company are to separate legal entities and each of you are taxed separately. Therefore your income does not belong to the company. You declare your income and pay taxes on it, nothing to do with the company.
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Old 31.08.2020, 11:05
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Re: Individual tax for CEO of dormant company

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You and the company are to separate legal entities and each of you are taxed separately. Therefore your income does not belong to the company. You declare your income and pay taxes on it, nothing to do with the company.

To add to this comment, the net worth of the company, according to your shareholding, should be included on your individual tax filing as a line item under VermŲgen (wealth).
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Old 31.08.2020, 11:24
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Re: Individual tax for CEO of dormant company

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Now the question is: should I declare my personal earnings from my day job as my companies revenue?
You could do that but it would be pretty stupid:

You as person still would have to declare the income and could not deduct the transfer to the company as an expenses.

On the company tax declaration you would have to declare it as income and it would be taxed. Again.

There should be no issue with a company which has zero income and zero expenses.
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Old 08.09.2020, 12:24
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Re: Individual tax for CEO of dormant company

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You and the company are to separate legal entities and each of you are taxed separately. Therefore your income does not belong to the company. You declare your income and pay taxes on it, nothing to do with the company.
Can you please point me to the document where it says that company and self are separate legal entities?
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Old 08.09.2020, 12:31
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Re: Individual tax for CEO of dormant company

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Can you please point me to the document where it says that company and self are separate legal entities?
You = working for a bank = income
GmbH = no income.

The separation is where the income is generated.
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Old 08.09.2020, 12:58
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Re: Individual tax for CEO of dormant company

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Can you please point me to the document where it says that company and self are separate legal entities?
Perhaps every single legal code in every single country in the world that allows the formation of limited liability companies? If you haven't grasped this basic fact, perhaps you should just close your sarl. It is kind of important.

https://www.kmu.admin.ch/kmu/en/home...d-company.html
6. Legal nature
The limited company (SA) is a trading company enjoying its own legal personality (legal entity).
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Old 09.09.2020, 22:22
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Re: Individual tax for CEO of dormant company

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Can you please point me to the document where it says that company and self are separate legal entities?
Hmm, how about the law which says that? Document enough?
It is regulated starting from Art. 52 Swiss Civil Code.
https://www.admin.ch/opc/en/classifi...index.html#a52

Be aware that a sole proprietorship is not a separate legal entity and the person having a sole proprietorship is taxed accordingly as a single person as well.
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Old 11.09.2020, 08:14
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Re: Individual tax for CEO of dormant company

What global bank do you work at as I will avoid like the plague....you work at a bank and dont know that your company is a separate entity??
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Old 11.09.2020, 11:34
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Re: Individual tax for CEO of dormant company

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What global bank do you work at as I will avoid like the plague....you work at a bank and dont know that your company is a separate entity??
And you as a professional accountant should know that many positions at an company do not require a knowledge of law or finance....
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Old 11.09.2020, 14:11
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Re: Individual tax for CEO of dormant company

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And you as a professional accountant should know that many positions at an company do not require a knowledge of law or finance....
This is true. But if you open up your own ltd company, this is one specific thing that you really really need to understand. People who don't start treating the company's assets and money as their own, and end up in a world of pain when the tax man comes a-knocking.
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Old 11.09.2020, 14:25
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Re: Individual tax for CEO of dormant company

Companies and owners/directors are often not completely separated for example if the company does something very dodgey usually the owner/directors can be held personally respsonsible.


Also for tax reasons if you're a shareholder this should be declared on the personal tax return although the value of those shares is usually calculated in a favourable manner as a function of both assets and income. This applies also to ex-UK contractors who have money in the company in the UK.
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