Swiss corporate tax reform iii

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. The third series of corporate tax reforms was meant to abolish the reduced taxation of holding, domiciliary and mixed companies. This taxation is no longer in line with international standards.

INTERNATIONALTAXREVIEW. Deloitte ’s Rene Zulauf and Diego Weder provide an update what is still to come as part. In order to further boost Switzerland’s attractiveness as a business location, cantons envisage lowering their ordinary corporate tax rates to compensate for the abolition of the cantonal tax regimes.

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. The need for tax reform is undisputed in Switzerland and the Federal Council will now prepare a revised bill as quickly as possible. 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. Corporate tax reform III was rejected by popular referendum today, with 59. Swiss government proposal, writes MNE Tax contributing editor, Davide Anghileri, of the University of Lausanne.

The Third series of corporate tax reforms III (CTR III ) is designed to increase international acceptance of the Swiss corporate tax system and guarantee competitive tax rates. In addition, companies should continue to contribute to government revenues. Key components of the reform.

Whatever the politicians will finally enact, the Swiss tax community has done its homework. The reform abolishes the reduced taxation of status companies. This far-reaching reform project will reshape the Swiss tax legislation with the aim of retaining and further developing Switzerland’s position as one of the most attractive business locations worldwide. The most popular Swiss tax privilege up to now was the so-called Mixed Company tax regime, which has been available for companies with predominantly international activities. In summary, due to the short timetable, most cantons are pushing ahead with the implementation of the reform into their cantonal tax laws.

Corporate Tax Reform III: Switzerland’s tax system remains attractive By Stefan Kuhn in Tax , 14. This tax reform was created in order to preserve Switzerland’s attractiveness as a location for multinational companies that want to take advantage of a more relaxed taxation. In future, competition will be based more heavily on standard tax rates instead.

With higher taxes, the cantons of Geneva and Vaud are under particular pressure. How competitive are Swiss corporate tax rates in a global comparison? And what’s the role of the different cantonal tax rates in terms of attractiveness within Switzerland?

It is in the sphere of autonomy of the cantons to determine their applicable corporate income tax rates. With TRAF, Swiss tax practices and laws are to be harmonized with internationally required taxation standards. The draft is very much in line with the concept of the corporate tax reform III.

In Switzerland the corporate tax reform III was rejected by popular referendum at the weekend (5 of the votes against the reform ). There is further the option for cantons to introduce an RD super deduction (see Federal Act on Tax Reform and AHV Financing (TRAF) in the Significant developments section). Switzerland will replace its privileged tax regimes by new attractive and internationally accepted tax measures. Since the need for tax reform was undispute the Federal Council immediately drew up a new proposal.

In recent years Switzerland has faced increasing pressure from the EU and OECD regarding its preferential tax regimes. The corporate tax reform proposal was linked to old-age and survivor’s insurance (AHV) reform. The aim of the proposal is to create an internationally compliant, competitive tax system for companies.

Among other positive amendments compared to the initial draft, the updated corporate tax reform package no longer includes the challenged introduction of a capital gains tax for individuals and confirms the abolition of the issuance tax. The report shows the direction on how the Swiss competitiveness and attractiveness as a business location should be secured and improved in the future. Currently Switzerland has various special tax regimes (e.g., holding status, domiciliary companies and mixed companies), which provide for low effective corporate income tax rates.

They will generally be abolished and other measures (e.g. patent box, RD incentive, lower tax rates, etc.) will be introduced.