This article sheds light on the consequences the SNB's decision will have on upcoming annual financial statements, business plans, refinancing, risk management and tax obligations.
The Swiss National Bank (SNB) ended its three-year-long cap of 1.20 Swiss franc per Euro, triggering a record surge in the Swiss franc against the Euro, resulting in the Swiss franc’s highest gain in more than three years versus the US dollar. The SNB’s decision will undoubtedly cause a number of additional challenges to Financial Institutions.
Every inbound assignee must be paid a salary that meets Swiss reference salary requirements for the time working in Switzerland. Thus, salaries currently paid in euro bear the risk to turn out to be too low and therefore not to be compliant anymore as a consequence of the decision of the SNB.