The Swiss Federal Council on 21 March 2018 published its dispatch on “Tax Proposal 17.” There are no major changes to the tax reform measures from the consultation draft (September 2017) and parameters (January 2018).
Among the items in the suggestions provided in the Federal Council’s dispatch are the following.
The proposal does not include a notional interest deduction. The Federal Council also did not make any changes to the capital contribution principle.
After the dispatch of the Federal Council has been published, the legislative proposals will be discussed in the first chamber of the Parliament (Council of States) during the ordinary summer session (28 May - 15 June 2018) and afterwards in the second chamber (National Council) during the autumn session in (10 - 28 September 2018). A final decision by the parliament could be reached in the autumn 2018. If no referendum is called, the first measures could be effective beginning in 2019 (that is, for elements of a more technical nature) and the main part of the reform effective beginning 2020. The temporary special tax rate solution would be effective immediately after a potential positive vote by referendum or the day when it is certain that no referendum is called.
Read a March 2018 blog item posted by the KPMG member firm in Switzerland
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