Fixed Assets Accounting in Switzerland: OR Art. 960a, Depreciation, and ESTV Rates

Swiss statutory accounting for fixed assets is governed by OR Art. 960a through 960d, which form part of the accounting provisions of the Swiss Code of Obligations (Obligationenrecht) as revised in 2013 and effective from 2015. The rules reflect the traditional Swiss prudence principle: assets must not be overstated; upward revaluation is generally prohibited; depreciation must be applied consistently to all assets with finite useful lives. The Eidgenossische Steuerverwaltung (ESTV) publishes accepted depreciation rates in its Merkblatt A/1995 that serve as the practical benchmark for statutory accounts.

Legal framework: OR Art. 960a–960d

• ●OR Art. 960a: Governs recognition and valuation of assets. Fixed assets are recognised at acquisition or production cost and may not be carried above cost. Depreciation and value adjustments must be applied where the value is durably reduced.
• ●OR Art. 960b: Applies to assets with a market price (e.g., listed securities) — not typically relevant for operational fixed assets.
• ●OR Art. 960c: Governs valuation of inventories — separate from fixed assets.
• ●OR Art. 960d: Special provisions for provisions (Ruckstellungen), including deferred tax provisions for larger companies.

Definition and scope of fixed assets

Fixed assets (Anlagevermogen) are assets held for use in operations over more than one accounting period — they are not held for sale in the ordinary course of business. Swiss accounting distinguishes three categories:

• ●Tangible fixed assets (Sachanlagen): Land, buildings, machinery, vehicles, IT equipment, furniture. All except land have finite useful lives and are subject to depreciation.
• ●Intangible assets (immaterielle Werte): Goodwill, software, patents, licences, trademarks. These are recognised only when acquired for consideration — internally generated intangibles are generally not recognised under OR accounting.
• ●Financial fixed assets (Finanzanlagen): Long-term investments, loans, and equity participations held as strategic investments rather than for trading.

Initial recognition: acquisition cost

Fixed assets are initially recognised at acquisition cost (Anschaffungskosten) or production cost (Herstellungskosten) for self-constructed assets. Acquisition cost includes:

• ●The purchase price (net of deductible VAT input tax where the company is VAT-registered).
• ●Import duties and non-refundable purchase taxes.
• ●Transportation, installation, and commissioning costs directly attributable to bringing the asset to working condition.
• ●For buildings: notarial fees, property transfer taxes, and architect fees directly related to the construction.

Subsequent expenditure on an asset is capitalised only if it increases the useful life or productive capacity of the asset. Routine maintenance and repairs are expensed as incurred.

Depreciation: OR Art. 960a(3) and ESTV rates

Depreciation (Abschreibung) of fixed assets is mandatory for all assets with a finite useful life. OR Art. 960a(3) requires that depreciation follow generally accepted commercial principles. In practice, companies rely on the ESTV Merkblatt A/1995 (legal basis: DBG Art. 27, 28 and 62), which sets the maximum rates accepted for direct federal tax. That leaflet remains the applicable reference as of 2026.

Straight-line (linear) vs declining-balance (degressiv)

Swiss law permits both methods. Under straight-line depreciation, the same franc amount is deducted each year (cost divided by useful life in years). Under declining-balance depreciation, the rate is applied to the net book value each year — producing higher depreciation in early years and lower in later years. Declining-balance reduces the tax base faster but results in a residual book value that never reaches zero (requiring a final write-off or switch to straight-line in the last years).

ESTV depreciation rates by asset class

These are the maximum declining-balance rates in the ESTV Merkblatt A/1995 (the straight-line column is half of each), and they remain in force as of 2026. Companies may depreciate more slowly where an asset has a longer useful life; depreciation booked above the leaflet maximum is added back to taxable profit by the tax authority unless a shorter useful life can be justified.

Impairment (ausserplanmassige Abschreibung)

In addition to regular scheduled depreciation, OR Art. 960a(3) requires a value adjustment (impairment) where an asset loses value for reasons other than use and age — where the recoverable amount falls below carrying (book) value for a sustained rather than temporary reason. Examples include obsolete machinery with no market, a building damaged beyond economic repair, or a trademark that has lost its commercial value. OR Art. 960a(4) separately permits additional depreciation and value adjustments for replacement purposes and to secure the going concern of the business.

Once an impairment write-down has been recorded, Swiss statutory accounts do not permit a subsequent reversal even if the asset recovers in value — consistent with the prudence principle. The ESTV accepts impairment write-downs as tax-deductible expenses in the year recorded, provided they are substantiated.

Upward revaluation: generally prohibited

Swiss OR accounting does not permit the upward revaluation of fixed assets to fair value or current market value. Assets may only be written down, not written up beyond original cost. The sole exception under OR accounting is the revaluation of land, buildings and participations up to their true value to eliminate a capital loss or over-indebtedness — a narrow exception rarely invoked in practice (OR Art. 725c, in force since 1 January 2023, replacing the former Art. 670). This contrasts sharply with IFRS (IAS 16 revaluation model) and Swiss GAAP FER (which permit fair value in specific cases).

Low-value assets: immediate write-off

Minor acquisitions may be expensed immediately in the year of purchase rather than capitalised and depreciated. Swiss federal tax law sets no fixed statutory low-value threshold; the figure applied is a matter of company policy and cantonal practice, commonly between CHF 500 and CHF 1,000 net of VAT. Items below the chosen threshold — such as individual computer peripherals, small tools, or minor fittings — are typically expensed to "other operating expenses" in the income statement. Companies should apply a consistent policy and disclose it in the notes.

Tax vs statutory accounts

Switzerland does not require a separate tax fixed asset register (Steuerbilanz) for most SMEs. The statutory accounts (Handelsbilanz) serve directly as the basis for corporate income tax assessment. The ESTV accepts depreciation applied in the statutory accounts provided the rates are within the published ESTV benchmarks. If the statutory depreciation is lower than the ESTV maximum, the company cannot claim additional depreciation in the tax return — the two tracks are aligned.

This differs from some other jurisdictions (e.g., Germany with its Handelsbilanz/Steuerbilanz split) where tax depreciation can deviate significantly from statutory depreciation. In Switzerland, the principle of Massgeblichkeit (authoritativeness of the commercial accounts for tax) means the two are closely aligned for OR-based accounts.