Since 2007, Switzerland’s privileged taxation of holdings, mixed and domiciliary companies has been under increasing international pressure, in particular from the European Union and the OECD. The federal and cantonal governments have reacted and are currently reshaping the Swiss tax legislation. The Federal Council submitted the dispatch on the "Federal Act on Tax-Related Measures to Strengthen the Competitiveness of Switzerland as a Business Location" to Parliament in June 2015. On 17 June 2016, Parliament adopted the Corporate Tax Reform III regime. Because a referendum was launched and the required number of signatures were submitted, the Swiss people will vote on the Corporate Tax Reform III on 12 February 2017.
The aim of Corporate Tax Reform III is to maintain and further develop Switzerland’s position as one of the most attractive business locations worldwide, while increasing international acceptance of its corporate tax legislation and sustainably securing adequate tax revenues to finance public activities.
The focus is on providing legal certainty and security of investment while also increasing the general competitiveness of the tax system and abolishing special tax regimes.
The reform is based on the following pillars:
Percentage of tax revenues originated from privileged taxed companies
KPMG in Switzerland is closely following the reform efforts both from a political and an economic perspective. Hence, our tax experts are able to regularly provide you with prompt and comprehensive insights.
Should you wish to discuss and review the tax planning setup of your group in Switzerland in the light of these changes, please contact us.
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