New tax rule for systemically important banks comes into force
Silvia Hunziker
The federal law on the calculation of the participation deduction for systemically important banks will enter into force retroactively as of 1 January 2019. This was decided by the Federal Council at its meeting on 8 March 2019.
The law corrects the calculation of the participation deduction so that the profit tax burden of the group parent of a systemically important bank remains unchanged if the latter issues too-big-to-fail instruments (e.g. bail-in bonds).
The Federal Assembly unanimously approved the Federal Act on the calculation of the participation deduction for systemically important banks in the final vote on 14 December 2018. The Federal Council's decision is subject to the proviso that the referendum will not be held before 8 April 2019.
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