Geneva Tax Administration: Deadlines and Penalties

Every individual domiciled in Geneva files an annual tax return. The legal basis is twofold: the Federal Act on Direct Federal Tax (LIFD, art. 124 ff.) for federal tax, and the Geneva tax procedure act and the LIPP for cantonal and communal tax. The LHID (art. 42 ff.) harmonises procedure between cantons.

Employees taxed at source do not file a return as long as their annual gross income remains below CHF 120 000 and they have no significant wealth or additional income. Above this threshold, or on request, a subsequent ordinary assessment (taxation ordinaire ultérieure, TOU) applies. Taxpayers subject to withholding tax may also request it before 31 March of the following year, which allows them to claim an LPP buy-in or actual expenses.

Self-employed persons file the ordinary return, accompanied by the accounts of the business. Legal entities (SA, Sàrl, associations, foundations) file a specific return with balance sheet, income statement and details of the profit tax. The combined ordinary Geneva rate (federal, cantonal, communal) stands at 14.0% of profit, i.e. approximately CHF 14 of tax for CHF 100 of profit.

Property owners also declare the rental value of their owner-occupied home, added to taxable income, and may deduct mortgage interest and actual or flat-rate maintenance costs.

According to the Federal Tax Administration, every taxpayer liable to tax must file their return within the period set by the canton, the procedure being governed by the LIFD for direct federal tax and by the LHID for cantonal harmonisation.

In Geneva, the ordinary filing deadline for individuals is set at 31 March of the year following the tax period. For the 2025 period, the deadline is therefore 31 March 2026. Self-employed persons and legal entities benefit from their own deadline, stated on the return form, generally 30 June for the former.

An extension must be requested before the deadline, via the online service of the cantonal administration or in writing. First extensions are generally granted until 31 May or 30 September, and beyond that subject to a stated reason. A request filed on 1 April is late: the delay has already occurred.

Once the assessment has been notified, the objection period is 30 days from notification (LIFD, art. 132; LHID, art. 48). It runs from receipt, not from the date the decision was printed. If the assessment is notified on 12 October 2026, it may be contested until 11 November 2026 inclusive. The objection must be in writing, reasoned and signed.

Against the decision on objection, an appeal to the Court of First Instance (Tribunal administratif de première instance) must likewise be lodged within 30 days (LIFD, art. 140; LHID, art. 50). These statutory deadlines cannot be extended. Only restoration of the time limit, for non-culpable impediment, is possible (LIFD, art. 133).

The objection period and the appeal period are 30 days from notification of the decision (LIFD, art. 132 and 140). Once this period has expired, the assessment becomes final and can only be corrected by revision, in restrictive cases.

Source: LIFD, art. 132, 133 and 140; LHID, art. 48 and 50 — fedlex.admin.ch

The first level is the formal reminder. In the absence of filing after a reminder, the administration proceeds to an assessment by discretion (LIFD, art. 130, para. 2): it estimates income and wealth according to its discretionary powers. The taxpayer can then only contest by means of a reasoned objection, supported by the complete return, and must demonstrate that the assessment is manifestly incorrect.

A disciplinary fine for breach of procedural obligations (LIFD, art. 174; LHID, art. 55) may reach CHF 1 000, and CHF 10 000 in cases of repeat offence or serious fault. It penalises failure to file, to provide documents or to supply information.

Default interest runs on instalments and balances of tax unpaid at the due date. The rate for direct federal tax is set by the Federal Department of Finance; that for Geneva cantonal tax is set by order of the Council of State. A balance of CHF 10 000 unpaid for one year at a rate of 3% generates CHF 300 in interest, to be verified against the rate in force for the tax year concerned.

Tax evasion (LIFD, art. 175; LHID, art. 56) is punished by a fine in principle equal to 100% of the tax evaded, adjustable from one third to three times depending on the degree of fault. Undeclared income of CHF 40 000, taxed at an overall marginal rate of 35%, evades CHF 14 000 of tax: the basic fine is CHF 14 000, in addition to the back tax and interest.

Non-punishable voluntary disclosure (LIFD, art. 175, para. 3; LHID, art. 56, para. 1bis) makes it possible to avoid the fine, once only in the taxpayer's lifetime, if it occurs before the authority has any knowledge of the case. Only the back tax and interest remain due, for the last 10 years at most. According to LIFD, art. 175, completed tax evasion is punished by a fine in principle equal to the amount of the tax evaded, i.e. 100%.

Source: LIFD, art. 174 and 175; LHID, art. 55 and 56 — fedlex.admin.ch. Non-punishable voluntary disclosure: LIFD, art. 175, para. 3; LHID, art. 56, para. 1bis (once only; back tax and interest for 10 years at most).

Accounting records and supporting documents must be kept for 10 years (CO, art. 958f). The period runs from the end of the financial year. The books, accounting vouchers, management report and audit report are covered. Retention may be electronic, provided it is intact and legible.

For private individuals, there is no single statutory period. In practice, supporting documents with a lasting tax effect should be archived for 10 years: LPP buy-in and 3rd pillar statements, property maintenance statements, mortgage interest certificates, salary certificates. The limitation period for the right to assess is 5 years after the end of the tax period, with an absolute limit of 15 years (LIFD, art. 120; LHID, art. 47). A back tax or evasion procedure, for its part, goes back up to 10 years.

The administration may require the production of books, documents and written or oral information (LIFD, art. 123 and 126). It may also question third parties, such as the employer, the bank or the pension fund, where the taxpayer does not cooperate. A taxpayer who refuses runs the risk of an assessment by discretion.

The burden of proof is shared: the authority proves the elements that increase the tax burden, the taxpayer proves those that reduce it, in particular deductions and business expenses. An undocumented deduction is refused.

The separation between the private sphere and the business sphere is the leading cause of adjustment. A self-employed person who uses their vehicle for mixed purposes must document the private share, generally imputed at 0.9% of the purchase price per month for a company vehicle, i.e. approximately CHF 270 per month for a CHF 30 000 vehicle. Private withdrawals must appear in the accounts.

Provisions are accepted if justified by business use: risk of loss, warranty, pending litigation (LIFD, art. 29). A provision without documented basis is added back to profit. Depreciation is deductible within the rates accepted by the circular of the Federal Tax Administration on depreciation: for example 40% on the declining balance for furniture and IT equipment, 25% for vehicles, 3% to 4% for commercial buildings.

For a company, profit tax is calculated on the accounting result corrected for expenses not justified by business use. Personal expenses of the shareholder paid by the company constitute a benefit appreciable in money, taxed as income at shareholder level and refused as an expense at company level. An excessive salary is requalified in the same way.

In the event of an audit, the burden of proof for business expenses lies with the operator. A complete file, with invoices, contracts, account statements and justification of the business purpose, removes most of the risk of reassessment.

Employee case: taxable income of CHF 150 000, combined cantonal and communal marginal rate of approximately 33% in Geneva (to be confirmed according to the individual situation). An LPP buy-in of CHF 50 000 reduces tax by approximately CHF 16 500 (50 000 x 33%). The pension fund's supporting document must be in the file. Without a document, the deduction is refused.

Self-employed case: net profit of CHF 120 000, including CHF 8 000 of mixed-use vehicle costs with no tracking of the private share. The authority imputes a 30% private share, i.e. CHF 2 400 of refused expenses. At the marginal rate of 35%, the back tax is CHF 840, plus interest. Keeping a logbook would have avoided the correction.

Company case: a Sàrl generates a profit before tax of CHF 200 000. It paid CHF 15 000 of private expenses for its managing partner. These expenses are added back to profit: 215 000 CHF x 14% = CHF 30 100 of tax, compared with CHF 28 000 without the add-back, i.e. CHF 2 100 of back tax. To this is added the taxation of the partner's income, i.e. CHF 15 000 x 35% = approximately CHF 5 250.

1. January: establish the annual calendar. Note 31 March (individuals), 30 June (self-employed, according to notification) and the filing date for the company's accounts.

2. January to February: assemble the document file for the past year. Salary certificates, bank statements, LPP and 3rd pillar buy-in supporting documents, mortgage interest statements, accounting vouchers.

3. Before 31 March: file the return or, failing that, request an extension before the deadline, online or in writing.

4. On receipt of the assessment: check the assessment notice within 30 days. Compare each item with the return filed and, if necessary, lodge a reasoned objection before the period expires.

5. In December: archive the documents for the period for 10 years. Check the completeness of the company's accounting file (CO, art. 958f) and consider whether a voluntary disclosure is appropriate if an omission has been identified.

Individual situations, in particular voluntary disclosure, the classification of a mixed expense or the restructuring of a sole proprietorship into a company, call for an analysis of the file. The trust company can prepare the return, check the assessment and prepare the objection within the 30-day period.