• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/22/2013

Switzerland - Proposals for corporate tax reform 

August 22: In the face of increasing international pressure, Swiss federal and cantonal governments are currently considering provisions to reshape Swiss tax law.

In May 2013, the Federal Council issued an intermediary report on measurements to strengthen competitiveness of the Swiss tax system.

The Swiss federal government proposed to replace the holding, domiciliary and mixed company regime in the next five to seven years with a series of measures. Suggestions include:

  • Tax incentives for innovation-driven business activities, such as research and development and exploitation of intellectual property
  • A notional interest deduction on equity
  • A general lowering of ordinary tax rates

Certain Swiss cantons already have ordinary income tax rates of 12% or below (that is, the overall effective tax rate, including all levels of taxations).

Read an August 2013 report prepared by the KPMG member firm in Switzerland: Swiss corporate tax reform III

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