Switzerland

Swiss Corporate Tax Reform III 

Since 2007, Switzerland’s privileged taxation of holdings, mixed and domiciliary companies has been under increasing international pressure, in particular from the European Union. The federal and cantonal governments have reacted and are currently reshaping the Swiss tax legislation: On 19 December 2013 the Federal Council issued the final report on “measurements to strengthen competitiveness of the Swiss tax system”.
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Measures to retain Switzerland’s attractiveness as a business location

To assure the competitiveness of Switzerland, 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.

 

The intermediary report released in May has already shown the direction in which the proposals of the Federal Council are going. The propositions outlined in the final report are to be grouped in three areas:

 

  • Introduction of new regulations for mobile earnings (i.e. IP box and notional interest deduction)
  • Lowering of cantonal tax rates
  • Abolishment of certain tax burdens to enhance the general business location attractiveness

Stay on top of the current developments regarding the Swiss Corporate Tax Reform III

What will happen now? The Federal Council has, based on the final report released 19 December, mandated the Swiss Federal Department of Finance (FDF) to consult with the Cantons. The FDF will consequently draft a proposal for consultation which is scheduled for summer 2014.

 

From a business point of view, the messages of the government are clear and the direction of the suggestions seems appropriate and realistic. The key goal is to maintain a sustainable system which is at least as advantageous as before. However, this is an ongoing process and throughout the year the policy makers will continue their work on the way to a reformed Swiss tax legislation.

 

KPMG in Switzerland is closely following the efforts of decision makers from both the political and the industry perspective. Hence, our tax experts are able to regularly provide you with prompt and comprehensive in depth insights.

 

Should you wish to discuss and review your tax planning set-up of your group in Switzerland in the light of these changes, please contact us.

Peter Uebelhart

Peter Uebelhart

Head of Tax

+41 58 249 42 24

Stefan Kuhn

Stefan Kuhn

Partner, Head of International Corporate Tax

+41 58 249 54 14

Live Webcast

Insight on the most important points and relevant implications of the final report by the FDF.

 

A recording of the webcast is available on this link.

 

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