Swiss depreciation rules
Depreciation (amortissement in French, Abschreibung in German) allocates the cost of a tangible asset over its useful life. In Switzerland, depreciation reduces your taxable profit and must comply with the Swiss Code of Obligations and cantonal tax authority guidelines.
Legal framework
Swiss Code of Obligations (CO) Art. 960a ↗ requires that fixed assets be valued at acquisition cost less necessary depreciation. The Federal Tax Administration (AFC/ESTV) and cantonal tax authorities publish recommended maximum depreciation rates in their circulars.
You may use higher depreciation in your commercial accounts (CO) than for tax purposes to be conservative, but you cannot claim more than the tax authority maximum as a tax deduction. Most small businesses align the two to keep it simple.
Standard depreciation rates
The following rates are widely accepted by Swiss cantonal tax authorities and are pre-configured in Gäld:
| Asset category | Method | Annual rate |
|---|---|---|
| IT equipment (computers, servers) | Declining balance | 40% |
| Software | Declining balance | 40% |
| Vehicles | Declining balance | 40% |
| Office furniture & fixtures | Declining balance | 25% |
| Machinery & equipment | Declining balance | 25% |
| Leasehold improvements | Linear | 10% (or over lease term) |
| Commercial real estate (buildings) | Linear | 2–4% |
| Goodwill | Linear | Over 5 years (max) |
Rates above are widely-used federal guidelines. Some cantons apply different rates. Always confirm with your cantonal tax authority or fiduciary.
Linear vs declining balance methods
- Linear (straight-line)
- Declining balance
Depreciation is calculated on the original cost each year.
Formula: Annual depreciation = Cost ÷ Useful life
Example: Laptop purchased for CHF 2,000, useful life 5 years (20% linear):
| Year | Depreciation | Book value |
|---|---|---|
| 1 | CHF 400 | CHF 1,600 |
| 2 | CHF 400 | CHF 1,200 |
| 3 | CHF 400 | CHF 800 |
| 4 | CHF 400 | CHF 400 |
| 5 | CHF 400 | CHF 0 |
Best for: real estate, leasehold improvements, goodwill.
Depreciation is calculated on the remaining book value each year. This leads to higher deductions in early years.
Formula: Annual depreciation = Book value × Rate
Example: Laptop purchased for CHF 2,000, 40% declining balance:
| Year | Depreciation | Book value |
|---|---|---|
| 1 | CHF 800 | CHF 1,200 |
| 2 | CHF 480 | CHF 720 |
| 3 | CHF 288 | CHF 432 |
| 4 | CHF 173 | CHF 259 |
| 5 | CHF 104 | CHF 155 |
The asset is never fully zero under this method — a residual value remains. Many businesses switch to linear in the final year.
Best for: IT equipment, vehicles, furniture.
Recording depreciation in Gäld
Method A — Automatic depreciation schedule
- Go to Assets → New Asset
- Enter the asset name, purchase date, cost, and select a category
- Gäld calculates the schedule automatically
- At year-end, go to Assets → Post Depreciation and click Post All
Gäld creates journal entries like:
Date: 2025-12-31
Description: Depreciation — MacBook Pro (40% declining balance)
Debit 6800 Depreciation CHF 800.00
Credit 1500 Office Equipment (net) CHF 800.00
Method B — Manual journal entry
If you prefer to enter depreciation manually:
- Go to Accounting → Journal Entries → New
- Fill in the entry (see example above)
- Use expense account 6800 (Depreciation) and the relevant asset sub-account
The asset register (Assets module) gives you a full schedule and avoids calculation errors. It is particularly useful when you have many assets.
Partial-year depreciation
If an asset is purchased mid-year, depreciation is pro-rated:
Example: Laptop purchased on 1 July 2025, cost CHF 2,000, 40% declining balance.
- Full year depreciation: CHF 800
- Pro-rated (6 months): CHF 400
Gäld handles pro-rating automatically when you enter the purchase date.