2025: a year of legal reforms
Switzerland’s legal framework is set to undergo significant changes in 2025 with new regulations affecting various sectors of the economy and legal practice. From revised VAT rules for e-commerce to updates in the Swiss Code of Civil Procedure, these changes reflect Switzerland’s efforts to adapt its regulatory environment to global trends and domestic challenges. Such reforms are critical in maintaining the country’s competitiveness and addressing evolving legal and economic dynamics. However, they also pose challenges for law firms as they navigate a more complex legal landscape while advising their clients.
Revisions to the Swiss Code of Civil Procedure: enhancing accessibility and efficiency
The Swiss Code of Civil Procedure (CPC) is set to undergo major revisions aimed at improving access to justice and enhancing procedural efficiency. According to Altenburger Ltd. legal + tax, the changes include reducing financial barriers for plaintiffs by lowering cost advances and broadening legal aid eligibility. Additionally, there is a greater emphasis on mediation and alternative dispute resolution methods to alleviate court burdens.
VAT reforms for e-commerce: simplifying compliance
Switzerland’s new e-commerce VAT rules, effective from 2025, aim to align the country’s tax regime with international standards. Notably, all cross-border e-commerce transactions will now be subject to Swiss VAT, regardless of the seller’s domicile. As explained by Swiss experts of Marosa VAT, the reforms impose registration and collection requirements on foreign sellers, reducing unfair competition for local businesses.
The Federal Act on the Taxation of Teleworking: addressing crossborder challenges
With the rise of remote work, the Federal Act on the Taxation of Teleworking will introduce standardized rules for taxing employees working across borders. Effective January 1, 2025, this law resolves ambiguities that arose during the COVID-19 pandemic, particularly for multinational companies with employees based in Switzerland.
Reforms in social security contributions and pension planning
Changes to Switzerland’s social security contributions and pension rules in 2025 aim to bolster the sustainability of the Swiss pension system. Experts from Swiss Life, leading provider of life and pensions and financial solutions, note that these reforms include increased contribution rates and adjustments to retirement benefits to reflect demographic trends. While these updates are vital for the long-term health of the pension system, they pose challenges for businesses and individuals in managing costs.
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