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6.2. Main Differences between Commercial and Tax Accounting

There are in principle no specific provisions for tax accounting in Switzerland.

The financial statements prepared in accordance with the Swiss GAAP are authoritative for the determination of the taxable income (authoritative principle).

Swiss tax authorities are only entitled to make correction to the net profit as shown in the financial statements if (a) the financial statements are not compliant with Swiss GAAP; or (b) there is a tax provision that allows for an adjustment of the taxable profit. Based on these tax provisions there is kind of a reversed dependency of financial accounting from tax law. In practice, the tax authorities’ depreciation tables are frequently used for financial statements.