Questionable compensation practice for board members

Actually, there’s no doubt: anyone who has a seat on a board of directors receives a fee as an individual («natural person»). In practice though, in many cases, this is handled differently. There are known cases where board members charge through a legal entity which leads to political discussions and restrictions in some cases.

But what does it mean on a legal and fiscal regulation level? Peter Schmid, Tax Expert at SwissLegal in St. Gallen, made it clear: «To charge board member activities through one’s own company is just wrong. The legal requirement is clearly leading to a different direction».

Please find the whole article in «Schweiz am Wochenende» here.

saw_20170715_0_0_1bzgma-(1).pdf (774 KB), pdf

Questionable compensation practice for board members

Update

28 Aug 2026

The Swiss Transparency Register Is Coming: What SMEs Should Do Now to Prepare

On October 1, 2026, the revised Anti-Money Laundering Act and the new Federal Act on the Transparency of Legal Entities and the Identification of Beneficial Owners—the TJPG for short—will take effect. The transparency register is legally governed by the TJPG and maintained by the Federal Office of Justice. This change by no means affects only banks or other financial intermediaries. In the future, the majority of Swiss stock corporations, limited liability companies, and cooperatives will be required to identify, verify, and document their beneficial owners and report them to the new registry.