A fiduciary in French-speaking Switzerland: cost, profitability and

An annual accounting mandate for a sole proprietorship starts at around CHF 1 500. A small SA (public limited company) with employees is more likely to cost between CHF 4 000 and 9 000 per year. These amounts pay for a precise scope of work.

The standard scope covers five blocks: bookkeeping and annual closings, the VAT return (quarterly or half-yearly), payroll and social insurance management (AVS, LPP, LAA), the tax return of the company and its directors, as well as advice on tax optimisation and restructuring.

The fiduciary replaces neither the auditor nor the lawyer. Under the Code of Obligations, the limited or ordinary audit must be entrusted to an auditor who is independent of the person keeping the accounts. It does not plead before a court, and it does not guarantee the outcome of a tax audit: it documents, justifies and defends the declared position.

The fiduciary acts only on the basis of the documents supplied. A document missing in December results in an omitted provision or a miscalculated depreciation charge in March. To see the services broken down by type of firm, see our article on what a fiduciary does in Switzerland.

The hourly rate of a fiduciary in French-speaking Switzerland ranges from CHF 120 to 220 depending on the profile: roughly CHF 120 to 150 for an accountant, CHF 150 to 190 for an experienced manager, CHF 190 to 250 for a qualified expert or tax adviser. These ranges are indicative and vary according to the firm, the complexity and the city.

Annual flat fees are generally negotiated on the basis of a volume of documents. Here are orders of magnitude observed on the Romandy market, to be confirmed by written quotation:

• Sole proprietorship, fewer than 200 entries per year, private tax return included: CHF 1 500 to 3 000.

• Sàrl (limited liability company) with no employees, VAT and closing: CHF 2 500 to 5 000.

• Small SA with 2 to 5 employees, payroll, VAT, closing and tax return: CHF 5 000 to 10 000.

• Private tax return alone, simple case: CHF 150 to 400.

• Private return with securities, property and an LPP buy-in: CHF 400 to 900.

The differences between cities remain moderate. Geneva and Lausanne are at the upper end of the range. Nyon is often positioned at the level of Lausanne. Sion and central Valais show rates that are on average 10 to 15% lower. The decisive criterion remains the scope of the flat fee: quality of data entry, number of advisory hours included, rate for hours outside the flat fee.

Before comparing, read our guide to hiring a fiduciary in Switzerland, which details the mandate procedure and the documents to provide.

An online tax return service typically costs between CHF 100 and 300 for a private return. A fiduciary charges between CHF 150 and 900 for the same exercise depending on complexity. The gap is small for an employee, but becomes decisive as soon as the situation gets more complicated.

The online service is sufficient in four cases: a single employer for an employee, no property, limited securities, no ancillary income. In this configuration, assisted data entry covers the essentials, standard deductions (professional expenses, pillar 3a, health insurance premiums) are handled well, and the cost remains proportionate.

The fiduciary becomes profitable as soon as one of these thresholds is crossed:

• Self-employment income, even ancillary: accounting and VAT require continuous follow-up.

• Ownership of a company (Sàrl, SA): salary, dividend and balance sheet must be arbitrated together.

• Rental property or second home: rental value, maintenance costs, depreciation and mortgage debt.

• Planned LPP buy-in: the timing and the amount directly influence the tax saving.

• Taxable income above approximately CHF 150 000: each deduction point weighs more at the margin.

Let us take a worked example. An LPP buy-in of CHF 50 000 saves approximately CHF 17 000 in tax in Geneva for an income of CHF 150 000 (assumption: single person, deduction fully allowed). A fee of CHF 600 to plan this buy-in is therefore recouped in the first year. Without advice, a timing error (EPL withdrawal within three years, buy-in spread over several financial years) can cancel the benefit.

The online service does not replace analysis. It executes. If your situation calls for a decision (structure, salary, buy-in), a fiduciary is the right counterpart.

Source: Article "Fiduciary or online service such as Allo Déclaration: decision thresholds" — assumptions of the worked example: single person, income of CHF 150'000, Geneva, deduction fully allowed

Converting your sole proprietorship into an SA costs CHF 3 000 to 5 000; the salary deduction repays this in the first year once profit exceeds approximately CHF 120 000. Below this threshold, the operation is rarely justified on tax grounds alone.

The mechanism rests on three levers. First lever: in a sole proprietorship, all profit is taxed as income, at the progressive scale and with self-employed AVS contributions. Second lever: in a company, profit bears corporate profit tax (effective rate of around 14% in Geneva, about 14% in the canton of Vaud, about 15% in Valais depending on the municipality), and the salary paid is a deductible expense. Third lever: dividends are partially taxed, at 70% for qualifying holdings at federal level, with varying cantonal rates.

The optimal salary is arbitrated between income tax, social contributions and the building up of pension provision. A higher salary increases AVS and LPP contributions but opens up LPP buy-in possibilities; a higher dividend reduces social charges but weakens pension provision. The restructuring must be calculated over three to five years, not over a single financial year.

The Sàrl suits most SMEs of 1 to 10 people, with a minimum capital of CHF 20 000. The SA requires CHF 100 000 of share capital (at least CHF 50 000 paid in) and is justified for financing or holding structures. Up-to-date rates are available on the official sites: estv.admin.ch for the federal framework and the cantonal administrations for effective rates.

The canton changes the corporate profit tax rate, the level of fees and taxation practices. The overview below summarises orders of magnitude, to be verified with each tax administration before any decision.

• Geneva: effective corporate profit tax rate of around 14% (federal, cantonal and communal combined). Fiduciary hourly rate: CHF 150 to 230. Sole proprietorship flat fee: CHF 1 800 to 3 200.

• Vaud: effective rate of around 14%, varying by municipality. Hourly rate: CHF 140 to 220. Sole proprietorship flat fee: CHF 1 600 to 3 000.

• Valais: effective rate of around 15%, varying by municipality. Hourly rate: CHF 120 to 190. Sole proprietorship flat fee: CHF 1 400 to 2 700.

Three operational differences weigh on the choice of an accounting firm. The rules on rental value and property maintenance differ from one canton to another, which calls for a firm that knows local practice. Filing deadlines and extensions vary: in Geneva, the ordinary filing date is set at 31 March with a possible extension, whereas Vaud and Valais apply their own calendars. Finally, the relationship with the cantonal tax administration (assessment, rulings, objections) is smoother with a locally established firm.

For a director resident in one canton whose company is in another, the intercantonal allocation of income complicates the analysis. This case requires a fiduciary able to handle both files in parallel. Consult ge.ch/impots, vd.ch and vs.ch for the scales and deadlines in force.

A mandate without a written scope generates fee disputes in roughly one file in five. Insist on a signed document before any work begins. Here are the points to validate, in order.

• Scope: list of services included (data entry, VAT, payroll, closing, returns) and of services charged in addition.

• Fees: flat fee or hourly rate, rate by profile, advance payments, annual price review.

• Deadlines: date for delivery of the accounts, the VAT return and the tax return; consequences of a delay in documents on your part.

• Liability: amount covered by the firm's professional liability insurance, any exclusions.

• Professional secrecy: for fiduciaries who also practise as a lawyer or auditor, check the scope of the protection. Fiduciary secrecy does not have the same legal basis as lawyer-client privilege.

• File holder: name of the person in charge, qualification (certified fiduciary expert, expert in finance and controlling, specialist in finance and accounting), arrangements for cover in case of absence.

• Exit: termination conditions, notice period, return of documents and accounting data.

Finally, verify the firm's entry in the commercial register on rc.ge.ch for Geneva or in the corresponding cantonal register, and its membership of a recognised professional association. Our checklist for choosing a fiduciary in Switzerland details the comparison grid you can apply to three quotations.

Three mistakes recur in tax audits and can be corrected on the same day, before the closing.

First mistake: the forgotten provision. A provision for doubtful debtors, litigation or warranty reduces the taxable profit of the financial year. Without an entry, the deduction is lost for the year in question. The tax administrations accept a provision on debtors of 5% of the balance of Swiss customers and 10% for foreign ones (ESTV flat rate), without individual justification. A balance of CHF 400 000 of Swiss debtors therefore allows a provision of CHF 20 000, i.e. approximately CHF 2 800 of corporate profit tax saved at the effective rate of 14%.

Second mistake: depreciation wrongly applied. The rates accepted by the AFC (Federal Tax Administration) are capped by category (for example 40% for IT equipment, 40% for vehicles, 25% for furniture under the declining-balance method). Depreciation that is too low forgoes a legitimate deduction; excessive depreciation will be reversed during the audit with default interest.

Third mistake: an LPP buy-in wrongly dated. The buy-in must be credited before 31 December to be deductible in the current year. A transfer executed on 2 January shifts the deduction by one financial year, which costs several thousand CHF if the marginal rate falls the following year. Another pitfall: an EPL withdrawal or a lump-sum payment within three years after the buy-in leads to the refusal of the deduction.

Add to this list the absence of a corrected VAT return and expense claims without supporting documents. A quarterly checkpoint with your fiduciary eliminates most of these risks.