Swiss tax reform update

Resource Information

The work Swiss tax reform update represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Swiss tax reform update

Creator

• Tozzi, E.R

Subject

• corporate income tax
• tax reform
• MNE
• tax rate
• cantonal tax
• patent box

Language

eng

Summary

The proposed Swiss tax reform has now been approved by public vote and will enter into force as of 1 January 2020. This article looks at the reforms and what they mean for multinational enterprises in Switzerland. The key point of the tax reform, will be the abolishment by the cantons of the preferential tax regimes for holding, domicile and mixed companies by the end of 2019. Further, on the federal level, the principal company status and the privileged finance branch taxation are no longer available. This will ensure that the Swiss tax system is in line with international minimum standards and that Switzerland will remain an attractive location for multinational enterprises (MNEs). The approved tax reform will enact new tax provisions in the Federal Direct Tax Act (DBG) and the cantonal Tax Harmonization Act (StHG) as well as in other federal tax laws (e.g. withholding tax) as of 1 January 2020. Based on the new tax provisions in the Tax Harmonization Act, the cantons need to implement the new provisions in their cantonal tax law. Notwithstanding, the cantonal implementation remains subject to referendum and - if raised - subject to public vote in the relevant canton

Citation source

In: Tax management transfer pricing report. - Arlington. - (2 July 2019) ; 3 p

Geographic coverage

Europe

Language note

English