Tax Expense and Tax Provision

Accounting for income taxes requires a thorough understanding of both tax legislation and financial reporting standards. In an evolving regulatory and reporting environment, companies must ensure that their tax expense and tax provisions are accurate, compliant and properly reflected in their financial statements.

RSM Switzerland supports companies with tax expense and tax provision services, combining technical tax expertise with a practical understanding of accounting and reporting requirements.

Annual tax expense and tax provision computation

Tax expense and tax provision preparation go beyond the mechanical calculation of taxes payable. They require the identification, assessment and documentation of tax positions throughout the financial year.

Our specialists assist companies with the preparation and review of annual tax expense and tax provisions, ensuring consistency between tax positions, financial statements and applicable reporting standards.

Tax provision preparation

From trial balances to tax disclosures, we support companies throughout the entire tax provision process. Our services include in particular:

• identification of tax impacts arising from business combinations or reorganisations;
• evaluation of uncertain tax positions;
• assessment of the need for valuation allowances;
• review of tax entries recorded during the year.

Integration with audit and financial reporting processes

Tax expense and tax provision are closely linked to financial reporting and audit processes.

Tax review within an RSM audit engagement

Where RSM is appointed as statutory or voluntary auditor, we can provide a tax review of the financial statements, covering in particular:

• corporate income and equity taxes;
• withholding tax;
• stamp duty;
• VAT.

This review helps ensure that tax positions reflected in the financial statements are consistent and properly supported.

Independent tax provision services

Where a company’s accounts are not audited by RSM, we can provide the same tax expense and tax provision services independently of the audit process. This includes:

• review of annual tax expense;
• review of tax provisions recognised on the balance sheet;
• confirmation of year end tax balances and related entries;
• additional tax provision computations and advice, where required.

Supporting accuracy, efficiency and compliance

Our objective is to work closely with your teams to deliver accuracy and efficiency in the tax provision process while supporting broader business and transaction planning objectives.

Tax expense and tax provision services are often closely connected to other areas such as corporate income tax, tax audits and due diligence, and our teams coordinate seamlessly across these disciplines where relevant.

Why RSM Switzerland

RSM Switzerland combines tax accounting expertise with practical experience in Swiss and international tax environments. Our specialists understand both the technical requirements of tax provision and the operational constraints of finance teams.

As part of the RSM network, we also support groups with cross border reporting requirements and coordination where international tax issues are involved.

Resources

For a practical overview of our tax expense and tax provision services, you may consult our Annual Tax Expense and Tax Provision Computation factsheet.