The articles of the zsis) - Center for Swiss and International Tax Law are summarized in quarterly issues at the end of each quarter. Register for free and read the current quarterly issue.
The articles of the zsis) - Center for Swiss and International Tax Law are summarized in quarterly issues at the end of each quarter. Register free of charge and read the current quarterly issue including the main topics.
You can find all quarterly issues from 2019 onwards in our archive.
zsis - Center for Swiss and International Tax Law is a digital information and research platform for practitioners. Our articles are divided into nine tax law topics and marked with corresponding colors. These contributions appear in the following formats: Articles, News and Documents.
In the following you will find a selection of the latest articles...
Non-profit status depends largely on the framework conditions. If these are right, people are willing to make a contribution - be it through donations or volunteering. Tax law provides important incentives: it exempts charitable organizations from tax liability and allows donations to charitable organizations to be deducted from taxable income. Tax law has thus made a significant contribution to the strong growth of the charitable sector in recent years. The foundation sector is booming.
The charitable sector is of enormous importance in Switzerland. With around 13,900 foundations, Switzerland has the highest density of foundations in Europe. These foundations are managed by around 62,000 foundation board members. Foundation assets are estimated at CHF 140 billion. With distributions of CHF 1.5 to 2.0 billion per year, charitable foundations in Switzerland make a valuable contribution. The recipe for success is in particular the favorable legal framework in Switzerland, first and foremost the standards for tax exemption due to charitable status.
This article discusses the new practice in the Canton of Zurich regarding the tax exemption of charitable institutions, which has been published since February 2024. First, procedural issues, in particular the application for tax exemption, are discussed. It then looks at the key points of the practice determinations, i.e. compensation for governing bodies, activities abroad and entrepreneurial funding models.
Since the introduction of value added tax (VAT) in 1995, its application to foundations has repeatedly given rise to discussion. Questions such as whether and when they are liable to pay tax, whether they are allowed to deduct input tax or when they are considered charitable still give rise to discussions today. The Federal Supreme Court has also dealt with VAT issues relating to foundations on several occasions. In the new revision of the Value Added Tax Act (VATA), there are also changes that could affect foundations in particular. This article deals with the most important issues that foundations have to deal with in the VAT environment.
This article deals with the tax treatment of donations by founders and sponsors. In particular, it examines the extent to which the establishment of a charitable foundation can be interesting from a tax perspective in addition to social or socio-political motives, but also what specific obligations and challenges are associated with this. It also examines the question of whether legal entities in particular, such as foundations, can make donations.
As a result of the global minimum tax, Switzerland must rethink its existing fiscal incentives to strengthen the location of business standards. The tax advantage of existing incentives (e.g. special R&D deduction, patent box) loses its effectiveness for affected companies. The first cantons are therefore proposing new instruments such as the Qualified Refundable Tax Credit or state subsidies. This article examines the question of whether such new incentives to promote business locations fall under the VAT term "subsidies and other contributions under public law" and how they should therefore be treated, in particular to what extent a reduction of the input tax deduction should be applied or can be waived.
With its latest decision of August 19, 2024 (9C_673/2023), published on September 25, 2024, the Federal Supreme Court confirms and clarifies its practice on the nullity of discretionary assessments.
The "Future Initiative" aims to tax the assets of natural persons through an additional inheritance and gift tax at federal level. With an exemption amount of CHF 50 million, the tax affects wealthy individuals. The proposed tax rate was set at 50%, without providing for exceptions to taxation. Due to the existing inheritance and gift taxes, this could lead to a much higher effective tax burden. Numerous unresolved questions and a planned retroactive effect are already causing great uncertainty well before a referendum at the beginning of 2026. This article uses examples to illustrate possible consequences and measures for action.
From January 1, 2025, people working in Switzerland who have not paid the maximum permissible contributions into their pillar 3a every year since the bill came into force will be able to pay these contributions retroactively for up to ten years and deduct these purchases from their taxes.
Recent case law in the area of sales tax for intermediaries in a group relationship has prompted the FTA to make clarifications in its administrative practice regarding Art. 13 para. 1 and Art. 13 para. 3 lit. b no. 2 StG. The two practical clarifications will be applied with immediate effect and will apply to all cases currently pending with the FTA.
The protocol of amendment to the DTA between Switzerland and Kuwait has entered into force. With a few exceptions, most of the amendments are applicable from January 1, 2025.
At its meeting on October 16, 2024, the Federal Council adopted the dispatch on the implementation and financing of the 13th AHV old-age pension. It is to be financed by increasing value added tax by 0.7 percentage points.
At its meeting on October 16, 2024, the Federal Council was informed by the Federal Department of Finance (FDF) about the reduction in the value exemption limit for travel.
At its meeting on October 16, 2024, the Federal Council decided to bring the Federal Act on the Taxation of Teleworking into force on January 1, 2025.
On October 14, 2024, the FTA published information on changes to VAT as of January 1, 2025.
On October 11, 2021, the FTA published the 2021 tax statistics.
On October 10, 2024, the FTA published the updated circular no. 6a regarding "Hidden equity".
In its ruling 9C_37/2023 of June 11, 2024 (see our article), the Federal Supreme Court addressed, among other things, the question of whether or not the tax expense should be taken into account in the cost base when applying the cost-plus method in the context of Art. 58 para. 3 DBG.
The Federal Tax Administration (FTA) published the 2025 withholding tax rates on October 8, 2024.
At its meeting on August 14, 2024, the Federal Council defined the key parameters for the implementation and financing of the 13th AHV pension.
On September 18, 2024, the FTA clarified the administrative practice in accordance with item 9 of circular no. 29c on the capital contribution principle dated December 23, 2023 regarding the declaration of reserves from capital contributions.
On January 1, 2025, the amendment to the FTA Ordinance on the level of net tax rates will come into force. The review of net tax rates, which must be carried out every seven years, has resulted in a tax rate adjustment for around 15 percent of industries and activities.
