Corporate tax reform switzerland

The reform aims to secure and strengthen Switzerland`s competitiveness and attractiveness as an international location for corporations. The Swiss corporate tax reform includes the repeal of tax regimes that are no longer internationally acceptable by introducing transitional measures as well as replacement measures. With headline tax rates of - in most cantons, which can be reduced to as low as with instruments such as the patent box, Switzerland will remain attractive to foreign investors.

In connection with the repeal of the tax regimes for holding, Swiss-domicile and “mixed companies” as well as of the principal company taxation and the finance branch regime , the tax reform allows for the possibility of a step-up mechanism for tax purposes as a transitional measure. The final version of the long awaited and many times amended corporate tax reform in Switzerland is now in its consultation phase.

Yet the voice of the companies most affected has really not been heard. To understand what these enterprises would expect from the reform and what the impact of it might be for them, RSM, the 6thlargest network of tax , audit and consulting services, is conducting. With this tax reform , Switzerland implements an internationally accepted tax system and safeguards the appeal and competitiveness of Switzerland as a business location. The reform brings an unprecedented change to the Swiss corporate tax landscape and nearly all companies are affected by the most significant overhaul of the Swiss tax system in decades. The prior four corporate tax rates, with a top rate applicable to income over $million, have been reduced to a single flat rate thereby converting the corporate progressive tax system into a flat tax system.

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. This vote sends a clear signal of cooperation to the European Union and the international community.

Corporate taxation in Switzerland becomes more attractive. Now is the time to review your Swiss operations. With TRAF, Swiss tax practices and laws are to be harmonized with internationally required taxation standards. The measures also strengthen Switzerland as a business location with a focus on innovation, value creation and job preservation. Companies can also expect greater legal and planning certainty.

After a long and drawn-out reform process, the Swiss Federal Act on Tax Reform and AHV Financing (TRAF) is reaching the final stages of maturity. Elga Reana Tozzi of Niederer Kraft Frey Lt looks at the reforms and what they mean for multinational enterprises in Switzerland. 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.

Nearly all companies are affected by the most significant overhaul of the Swiss tax system in decades. The outcome, approved by 66. The corporate tax reform , as it stands, will ensure that Switzerland remains competitive internationally for multinationals and will be able to continue to attract foreign investments. With the corporate tax reform , most of the cantons in the high range are planning to reduce their tax rates (Geneva is planning to reduce it to 1). 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. Sunday’s result also means a financial boost for the country’s. The bill has now been renamed to Federal Act on Tax Reform and AHV Financing (TRAF).

The corporate profits tax is itself deductible from the taxable corporate profits resulting to the statutory rates being higher than the effective tax rates. At the federal level, the statutory corporate profits tax rate is 8. Deloitte ’s Rene Zulauf and Diego Weder provide an update what is still to come as part of the reform package, and analyse what changes should be made in light of stakeholder feedback. In Switzerland , all taxes for corporate taxpayers are deductible.

As this is different in most other countries, Swiss tax rates should not be compared 1:with foreign tax rates. If the aggregate of all rates in Switzerland amounts to for example (of which is federal tax ),.