Reichlin Hess strengthens partnership

In response to international pressure, a federal register of beneficial owners of companies is to be set up to combat white-collar crime. The following article provides a summary overview of the new provisions with a focus on the obligations of corporate bodies, shareholders and beneficial owners of Swiss companies.

Individuals with domicile in Switzerland are subject to taxation on a federal, cantonal and communal level. The tax burden can significantly vary between the cantons and also between municipalities within the same canton. Compared to other cantons, income tax and wealth tax is considerably low in the canton of Zug. The changes in the cantonal tax law which entered into force at the beginning of 2024 and planned changes will further reduce the tax burden in the canton of Zug.

On 27 February 2024, following the Council of States, the National Council also adopted Thierry Burkart's motion (22.4445) titled ‘Strengthen the Swiss family foundation. Lift the ban on maintenance foundations’.

There is a well-established practice in Switzerland regarding the taxation of cryptographic tokens in general and asset tokens in particular. The Swiss Federal Tax Authorities SFTA and cantonal tax authorities published this practice in several working papers, fact sheets, information sheets and otherwise. The basic principles of the taxation of asset tokens in Switzerland are summarised below.

Invoices that are not being paid, or failure to comply with payment reminders, is extremely frustrating for creditors in both Switzerland and Germany. For this reason, both the Swiss and German legal systems offer creditors a simple and efficient way of enforcing their claims: in Switzerland through debt enforcement and in Germany through dunning procedures.

In Switzerland, taxes are levied at federal, cantonal and municipal level. This is, in particular, the case with income and capital taxes for legal entities and income and wealth taxes for individuals. The tax burden between the cantons and also between municipalities within the same canton may vary considerably.

Immigration to Switzerland from abroad, especially from our neighbouring countries; Germany, Italy and France, remains high. It is unlikely that this trend will abate in the near future, not least because of the high demand of skilled workers. As a result, the need for advice on matrimonial and inheritance matters having an international dimension - whether due to bi-national marriages, the death of a foreigner living in Switzerland or having assets abroad - is constantly increasing.

As part of the revision of the Stock Corporation Law, the provisions on reserves have been restructured and brought into line with accounting law (Art. 671 - 673 Code of Obligations (CO)) and the order in which they are to be set off against losses has been determined (Art. 674 CO).

The Federal Administrative Court has published an interesting ruling in the area of VAT in connection with the validation of transactions and new blocks in two decentralised blockchain-based networks (Polkadot and Kusama).