krfacts January Edition 2025 Legal reforms 2025
Year 2025 will again see numerous legal changes affecting various areas of life. Given the complexity and diversity of these legal changes, it can be challenging to keep track of them. To make this task easier for you, we have once again compiled the most important legal changes for 2025 in a compact form.
Measures against abusive bankruptcies
The Federal Act on Combating Abusive Bankruptcies brings comprehensive changes to better protect creditors and prevent the abuse of bankruptcy proceedings. Stricter requirements now apply, so that, for example, public-law claims must also be pursued under the general rules. In addition, bankruptcy is to be prevented from being used as a means of unfair competition.
Another change concerns the commercial register. In the future, it will be possible to search for natural persons and check their involvement in bankruptcy proceedings via the central company index (Zefix). This makes it possible to check potential contractual partners.
In addition, the trade in so-called shell companies is clearly regulated by law. Such dissolved companies without business activities can no longer be transferred, as these transfers are considered null and void. Commercial registry offices are obliged to check annual accounts if there is any suspicion of shell trading and, if necessary, to refuse entries.
In addition, retroactive opting out has been abolished, so that companies can only waive a limited audit for future financial years. The tax office is obliged to report to the commercial registry office if a company has not submitted its annual financial statements.
The measures are intended to prevent debtors from avoiding their financial obligations by abusive bankruptcy proceedings.
Most important changes to the Swiss Code of Civil Procedure (ZPO)
The planned changes to the Code of Civil Procedure (ZPO) are aimed at improving its practicality and facilitating access to courts and the enforcement of rights in private law. In particular, the cost barriers and the risk of legal costs are to be reduced, collective legal protection strengthened and the coordination of proceedings simplified.
The federal government is enabling the cantons to establish international commercial courts that can have jurisdiction in disputes with an international dimension. These courts may use English as the language of proceedings, while the Federal Supreme Court will continue to hear cases in a national language but will accept English legal documents.
To lower financial hurdles, only an advance on costs amounting to a maximum of half of the probable court costs may be demanded from the plaintiff in the future. In addition, court hearings can be conducted by videoconference under certain conditions.
Another key point is the right of corporate lawyers to refuse to cooperate. Internal legal departments may refuse to hand over documents if they are headed by a person with a bar admission. This regulation strengthens the protection of Swiss companies, especially in international proceedings.
Finally, the new ZPO strengthens the conciliation procedure. The principle of “conciliation before judgment” should be applied even more frequently. It also clarifies that legal entities must be represented in the proceedings either by a registered body or a person with commercial power of attorney. Failure to appear without excuse can be punished with a fine of up to 1,000 francs.
New regulations in international inheritance law
More and more people are moving internationally, both professionally and privately, which is why the number of international inheritance matters has also increased. The new provisions for international inheritance matters are intended in particular to reduce the risk of conflicts of jurisdiction between authorities in Switzerland and abroad. In addition, people who have assets in Switzerland and abroad will have additional options for organizing their inheritance matters.
Reduction of the tax-free limit for travelers
As of January 1, 2025, the tax-free limit for travelers will be reduced from CHF 300 to CHF 150. This means that goods for private use can only be imported tax-free into Switzerland up to a total value of CHF 150 per person per day. If the total value per person is higher, Swiss VAT must be paid on the imported goods. This amendment to the ordinance of the Federal Department of Finance fulfills the demands of two citizens' initiatives to reduce shopping tourism and improve tax fairness. Using the “QuickZoll” customs clearance app, private individuals can independently declare their goods for import and pay any duties directly via the app.
Changes to company law
The new company law has been in force in Switzerland since January 1, 2023. There is a two-year transition period for adapting the statutes. The company law revision will come into full force on January 1, 2025. Existing articles of association can remain in place, but provisions that are not compatible with the new company law will automatically become invalid from that date. We recommend that you make the necessary changes to avoid legal uncertainty. The amendment of the statutes is also necessary in order to benefit from innovations such as the capital band.
Partial revision of the Value Added Tax Act and the Value Added Tax Ordinance
The main objectives of the partial revision of the Value Added Tax Act (MWSTG) and the Value Added Tax Ordinance (MWSTV) are to adapt value added tax to digitalization and internationalization and to simplify value added tax. In addition, value added tax is to be partially reduced or repealed and the fight against fraud improved.
A key component of the reform is the introduction of platform taxation. Mail-order platforms are regarded as service providers and in future will have to declare and pay tax on all deliveries of goods that are processed via their platform. In addition, new tax exemptions are being introduced, for example for cultural events, certain medical treatments and sanitary products, which are now subject to the reduced tax rate.
In the future, SMEs will also be able to voluntarily settle VAT annually, thereby making the settlement process more efficient. In addition, foreign companies will be able to dispense with the appointment of a tax representative in Switzerland if they fulfill their procedural obligations elsewhere.
The partial revision also strengthens the fight against fraud. For example, the Federal Tax Administration (FTA) is given the right to demand collateral from members of management bodies in order to take action against serial bankruptcies.
New electricity, CO2, climate and innovation protection legislation
On June 9, 2024, Swiss voters approved the new Electricity Act. Some provisions will already come into force on January 1, 2025. It promotes a secure electricity supply with renewable energies, particularly in winter, and facilitates the construction of hydropower projects. In addition, new regulations for the production, transport, storage and consumption of electricity are being introduced.
The revised CO2 Act (2025-2030) aims to halve greenhouse gas emissions by 2030 and relies on incentives rather than new levies. It focuses on the building sector and the expansion of the charging infrastructure for electric cars. Companies can exempt themselves from the CO2 tax if they commit to reducing emissions.
The Climate and Innovation Act sets the target for Switzerland to achieve net-zero emissions by 2050. The measures for achieving this target are included in the CO2 Act.
Additional payments into the third pillar
From 2025, it will be possible to make additional purchases into pillar 3a. People working in Switzerland who have not paid the maximum permissible contributions into their pillar 3a every year since the bill came into force will be able to pay these contributions retroactively for up to ten years in the future and deduct these purchases from their taxes.
Benefits from welfare funds are being expanded
From 2025, it should be possible for welfare funds to provide discretionary benefits in the event of illness, accident and unemployment, even if there is no emergency. This is made possible by an amendment to the Civil Code and is intended to serve as a preventive measure. Until now, benefits could only be provided to people in an emergency situation to cushion the economic consequences of old age, death and disability.
Various inflation adjustments
On January 1, 2025, AHV/IV pensions will be adjusted to reflect current price and wage trends and increased by 2.9 percent. The minimum pension will rise from CHF 1,225 to CHF 1,260 per month, while the maximum pension will increase from CHF 2,450 to CHF 2,520 per month (amounts for a full contribution period). The increase in pensions will result in additional costs of around CHF 1,672 million. For self-employed persons and those not in gainful employment, the minimum contributions for AHV, IV and EO will increase annually from CHF 514 to CHF 530, and the minimum contribution for voluntary AHV/IV from CHF 980 to CHF 1,010.
The limits for occupational pensions have also been adjusted. The coordination deduction will be increased from CHF 25,725 to CHF 26,460, while the entry threshold will rise from CHF 22,050 to CHF 22,680. In the context of tied pension provision (pillar 3a), the maximum permissible tax deduction increases to CHF 7,258, up from CHF 7,056. For persons without a pillar 2 pension, the maximum permissible tax deduction increases from CHF 35,280 to CHF 36,288.
In addition, there are adjustments to the supplementary and bridging benefits. The amount for covering general living expenses will be increased from CHF 20,100 to CHF 20,670 per year for single people and from CHF 30,150 to CHF 31,005 for married couples. For children over 11 years of age, the amount will be increased to CHF 10,815 and for children under 11 years of age to CHF 7,590.
