The Swiss Federal Council, after confirming the schedule for “Tax Proposal 17,” has decided not to make significant changes to the tax proposals from the version provided for consultation, and the final legislative proposal is expected at the end of March 2018.
It is anticipated that the final version of the legislation will be quite similar to the draft submitted for consultation. One change is that Tax Proposal 17 would provide for an increase in the cantonal share of the direct federal tax income, currently at 17%, to 21.2% (instead of 20.5%) as requested by the cantons.
Among the main elements of the tax reform proposal are measures that would:
There would be (for now) no notional interest deduction on shareholders’ equity.
Further details on the tax measures will be provided within a dispatch due for publication at the end of March 2018. Parliament would make its final decision in the fall 2018. If no referendum is called, the first measures (elements of a more technical nature) could be effective at the start of 2019 and the main part of the reform by 2020. This timetable is ambitious but shows that the reform is seen as highly urgent due to ongoing and recent international pressure and changes in the international tax landscape.
Read a February 2018 report prepared by the KPMG member firm in Switzerland
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