Swiss corporate tax reform

The implementation period is short and the impact of the reform on taxpayers needs to be analyzed now to seize opportunities and avoid competitive disadvantage. This created pressure for the Swiss government to pursue tax reform. Not only is the Swiss tax system different from many other countries, the Swiss legislative system is also different from other systems. Switzerland is a direct democracy, which means that often, Swiss citizens can participate directly in decision-making through referenda. The reform aims to secure and strengthen Switzerland`s competitiveness and attractiveness as an international location for corporations.

Corporate tax changes in the canton of Zurich.

Tax Reform and AHV Financing. Overview of the reform. The reform is aimed to guarantee the necessary legal certainty as well as to further preserve the attractiveness of Switzerland’s corporate tax regime in a global perspective by introducing new tax measures. The tax reform focuses on legal certainty and investor confidence and pursues the following three objectives: safeguarding the tax appeal of Switzerland as a business location, promoting the international acceptance of Switzerland’s corporate tax legislation and ensuring sufficient tax revenues to finance public activities.

Source: Swiss Federal Department of Finance 6. What do opponents say? Their argument is the same as it was two years ago: It will cause a shortfall in tax revenue that. With TRAF, Swiss tax practices and laws are to be harmonized with internationally required taxation standards.

Nearly all companies are affected by the most significant overhaul of the Swiss tax system in decades. The Swiss Parliament linked the draft bill to additional funding for the AHV, in order to achieve a better political acceptance of the draft bill on the Tax Proposal 17. Swiss corporations are advised to assess the implications of the various Swiss tax reform measures as well as the respecting tax accounting implications, both from a content but also from a timing perspective. This annual study analyzes corporate and individual tax rates in Switzerland and internationally, analyzing data to draw comparisons between locations.

The effective tax rates resulting from the corporate tax reform will impact directly the attractiveness of Switzerland for international companies. According to the majority of international company effective tax rate at which Switzerland would cease to be attractive is over. Elga Reana Tozzi of Niederer Kraft Frey Lt looks at the reforms and what they mean for multinational enterprises in Switzerland. The corporate tax reform proposal was linked to old-age and survivor’s insurance (AHV) reform. This impact should be analyze and potential options for relocations should be considered.

Swiss corporate tax reform was largely approved by a popular referendum on Sunday, May, with 64. Since the need for tax reform was undispute the Federal Council immediately drew up a new proposal. Despite the resistance, the Swiss Parliament has decided to adopt the notional interest deduction as an optional measure for high- tax cantons. The reform of the present corporate taxation system is an important issue and is aimed at securing the fiscal attractiveness of Switzerland in the long term, while guaranteeing international acceptance as well as sufficient tax revenues. By Davide Anghileri, University of Lausanne.

The reform provides for the reduction of the corporate income tax from 24. This new rate is compatible with international standards and will help Geneva to remain attractive to investors, both on an international and national level. Deloitte ’s Rene Zulauf and Diego Weder provide an update what is still to come as part of the reform package, and analyse what.

The approved version contains among others the following main elements: Abolishment of all Swiss special income tax regimes All special Swiss. The below overview outlines some of the differences and points of attention with regard to the current and new. TRAF introduces major changes in the Swiss tax system by abolishing certain current preferential tax regimes and replacing them with new measures that are in line with international standards.

Sunday’s result also means a financial boost for the country. Changes at federal and cantonal level (Geneva). This vote sends a clear signal of cooperation to the European Union and the international community.

Switzerland’s Federal Council submitted a corporate tax reform plan to the Swiss Parliament earlier this month that focuses on abolishing preferential tax treatment of holding and management companies while increasing preferential treatment of research and development (RD) and intellectual property activities, implementing rules for the disclosure of reserves, and reworking the capital tax.