On 13 November 2019, the Swiss Federal Council approved three ordinances in connection with the Federal Act on Tax Reform and AHV Financing (TRAF) that will enter into force on 1 January 2020. The three ordinances provide specifications regarding the credit of foreign withholding taxes, the application of the patent box regime, and the notional interest deduction on surplus equity.
Benno Hinni
Swiss tax consequences in connection with the sale of shares: Limitations of the principle of tax-free capital gains for individuals
The tax appeal court of the Canton of Zurich dealt in a recent decision with the taxation of capital gains in connection with the sale of shares by individuals and its possible treatment from a Swiss income tax perspective. In general, if individuals resident in Switzerland realize a gain from the sale of tangible assets it should not be subject to Swiss income taxes. However, a few important exceptions should be considered.
Swiss VAT: Declaration requirements for foreign enterprises generating turnover in Switzerland
The Swiss Federal Tax Authority (SFTA) has issued the final version of the VAT-Information brochure no. 22 regarding foreign enterprises.
Taxation of Cryptocurrencies and other Tokens: Working Paper published by the Swiss Federal Tax Administration
On 27 August 2017, the SFTA has issued a working paper regarding the treatment of cryptocurrencies and other coins or tokens based on the blockchain technology from a Swiss income tax, withholding tax and stamp duty perspective. The working paper also provides guidelines regarding the net wealth taxes imposed on a cantonal and communal level.
Swiss corporate tax reform approved; entering into force as of January 1, 2020
Following the referendum, the voters in Switzerland approved in a public vote held on May 19, 2019, the changes of the law for the corporate taxation and the financing of the old age pension fund (STAF). Special taxation regimes will be abolished and new tax relief measures introduced on cantonal and communal level.
Tax Reform 17 finalised
The Swiss Parliament has finalised the tax reform 17 in the final vote of September 28, 2018. The new tax law should be implemented at the beginning of the year 2020. The entering into force of the tax reform 17 is subject to a possible referendum and a popular vote.
Taxation of the Digital Economy: Developments in the EU and implications on Swiss entities
On 9 September 2018, the EU Finance Ministers decided to find an agreement about the future taxation of the digital economy in the EU until the end of the year. It is discussed to introduce a tax of 3% on the turnover of digital services and a new "digital permanent establishment".
Accelerated distribution of dividends
The Swiss Federal Tax Administration (SFTA) has recently cleared the way for the accelerated distribution of dividends from subsidiaries to the parent company and the shareholders of the parent company from a Swiss withholding tax perspective.
Value Added Tax regarding Crypto Currencies and Initial Coin Offerings
On June 21, 2018, the Swiss Federal Tax Administration SFTA published a first draft of their adjusted practice guidelines regarding the taxation of crypto currencies with respect to the value added tax (VAT).
Initial Coin Offering: Tax ruling for the issuance of an asset token obtained
Reichlin Hess obtained a tax ruling regarding the income tax treatment of an ICO regarding an asset token.
New Federal Circular No 37A regarding Taxation of Employee Participation Benefits
The Swiss Federal Tax Administration (SFTA) has published a new Circular Letter on May 4, 2018 regarding the tax treatment of participation benefits at the level of the employer.
AEOI and voluntary self-disclosure – the deadline expires
On January 1, 2017 the legal basis for the introduction of the automatic exchange of information (AEOI) came into force.
Tax Proposal 17: Canton of Zug welcomes the dispatch of the Federal Council
The Canton of Zug welcomes the dispatch from the Federal Council and underlines the importance of the reform to maintain legal certainty and attractiveness as a business location.
Tax Proposal 17: Federal council determines the cornerstones
At its meeting on 31 January 2018, the Federal Council adopted the cornerstones for the message or dispatch to the draft bill to the Parliament regarding the tax proposal 17 (TP17).