Swiss voters have rejected corporate tax reform in a recent referendum.
The proposed reform would have abolished Switzerland's special preferential tax regimes, which would have halted EU and OECD pressure on the country to reform its corporate tax system (the new corporate tax system would have been in line with the OECD's base erosion and profit sharing [BEPS] project).
As a result of this rejection, some companies (including holding, domicile, mixed companies, principal companies and finance branches) will continue to enjoy special tax status in various Swiss cantons and benefit temporarily from lower taxation in comparison to other corporations.
The aim of the corporate tax reform was to maintain Switzerland's position as an attractive tax and business location, while increasing international acceptance of its corporate tax legislation. It included measures such as:
The Swiss federal government and the cantons are expected to focus on drafting an alternative regime.
For more information, contact your KPMG adviser.
Information is current to February 28, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500