About 10 years ago, the European Union, and later the OECD, began to put pressure on Switzerland regarding the country’s 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 take another look at potential responses. The need for reform remains unquestioned by advocates and opponents of the rejected bill. Following a new consultation process, the Federal Council submitted its dispatch on Tax Proposal 17 (TP17) to Parliament in March 2018.This proposal is 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. Visit our blog or watch our webcast to learn more about the dispatch.
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.
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