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6.5. Deductions

Expenses wholly and exclusively incurred for the production of taxable income are deductible for tax purposes. Cross-border payments are generally tax deductible. The Swiss Supreme Court has established certain rules to be followed for the tax deductibility of payments to foreign companies, in particular to offshore companies. In essence, the tax authorities may request for the disclosure of the following information:

  • Recipient of the payment
  • Beneficial owner of the recipient
  • Underlying contracts
  • Correspondence between the payor and the payee as well as the involved banks