Art. 25 Tax Law (TL)

1 Expenses related to an independent gainful activity, justified by commercial or professional use, are deductible.

2 Such expenses notably include

a) depreciations and provisions according to articles 26 and 27;

b) recorded losses incurred on commercial assets;

c) contributions to staff welfare institutions of the company, provided that any use contrary to their purpose is excluded and that said institutions comply with the prescriptions established by the Government;

d) interest on commercial debts as well as interest paid on participations referred to in article 16, paragraph 2bis;

e) training and professional development expenses of the company's personnel, including retraining expenses;

f) sanctions aimed at reducing the profit, provided they do not have a penal nature.

3 The following are notably not deductible

a) payments of secret commissions in the sense of Swiss criminal law;

b) expenses that facilitate the commission of offenses or that constitute consideration for the commission of offenses;

c) fines and financial penalties;

d) administrative financial sanctions, to the extent they have a penal nature.

4 If sanctions in the sense of paragraph 3, letters c and d, have been imposed by a foreign criminal or administrative authority, they are deductible if

a) the sanction is contrary to Swiss public order; or if

b) the taxpayer can credibly demonstrate that they have undertaken everything reasonably required to behave in accordance with the law.

← Art. 24 Tax Law (TL) 6. Finances, **Royalties 64. Taxes and Duties 641. Direct Taxes of the State and Municipalities** Art. 26 Tax Law (TL) →