Supplementary tax: Date of application of the safe harbor rules on hybrid arbitrage arrangements in accordance with the administrative guidelines of December 18, 2023

The administrative guidelines of the Inclusive Framework on BEPS of the OECD and the G20 countries published on December 18, 2023 deal with hybrid arbitrage arrangements within the framework of the temporary CbCR safe harbor in chapter 2.6. It is envisaged that the document published on December 20, 2022 on safe harbors will be supplemented with paragraphs 74.25 to 74.31 of the administrative guidelines of December 2023.

Paragraph 74.31 of the December 2023 Administrative Guidance allows tax jurisdictions to apply paragraphs 74.25 to 74.30 of the December 2023 Administrative Guidance not in respect of transactions after December 15, 2022, but only in respect of transactions after December 18, 2023, for constitutional reasons or other overriding legislation.

For Switzerland, the date of application of these rules is therefore determined as follows Chapter 2.6 regarding hybrid arbitrage arrangements under the temporary CbCR safe harbor of the administrative guidance of December 18, 2023 applies to transactions after December 18, 2023.

The FTA communication agreed with the Swiss Tax Conference (SSK) is available here .