Tax Proposal 17 | KPMG | CH

About 10 years ago, the European Union, and later the OECD, had begun to put Switzerland under pressure for their privileged taxation of holdings, mixed and domiciliary companies. Switzerland’s first attempt to respond, in the form of the Corporate Tax Reform III however, was clearly rejected by Swiss voters on 12 February 2017. The Federal Council and cantons thus had to revise the potential for alternative responses. The fact that reforms are a necessity is to this day, unquestioned by advocates, as well as those who opposed the rejected bill. The Confederation recommenced its efforts accordingly and on 9 June 2017 the basic outline of the Tax Proposal 17 (TP17) was presented. The Federal Council started the consultation process on 6 September by releasing its draft suggestion for the Tax Proposal 17. This suggestion is based on the parameters published in June and is also strongly influenced by CTR III – but in a slimmed-down version.


Measures to retain Switzerland’s attractiveness as a business location

In principle, TP17 pursues the following three objectives, similar to those of CTR III: 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.

Its focus is furthermore, to ensure legal and investment security and a general increase in the competitiveness of the Swiss tax system, whereas special tax regimes are to be abolished. However, the loss of such special tax regimes is to be mitigated, among other things, by cantonal measures. You will find more information on the suggested measures in our blog.

Stay on top of current developments regarding Tax Proposal 17

KPMG Switzerland is following the reform process closely, both from a political and an economic perspective. Our experts are able to provide you with regular and comprehensive insights into the current discussions. Should you wish to discuss and review how the Tax Proposal 17 measures impact the tax planning setup of your group in Switzerland, please contact us.


Key contacts

Peter Uebelhart, Head of Tax, Member of the Executive Committee

Stefan Kuhn, Head of Corporate and M&A Tax, Region Zurich and Ticino


Your regional contacts

Reiner Denner, Region Basel

Markus Vogel, Region Central Switzerland

Hans Jürg Steiner, Region Berne

Peter Michael, Region Eastern Switzerland

Vincent Thalmann, Region Western Switzerland

CTR III rejected

CTR III rejected

The Swiss public has rejected the Corporate Tax Reform III. Get some first impressions from Martin Naville and Peter Uebelhart on this outcome.

How will the OECD and the EU react to the CTR III’s rejection?

See what Vinod Kalloe, Head of International Tax Policy, KPMG Meijburg & CO, and former senior policy adviser at the European Commission (EC) has to say.

 
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Comparison of Cantons

Percentage of tax revenues originated from privileged taxed companies.

 
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