STAF - Abolition of the federal practices for principal companies and Swiss Finance Branches
Tabea Lorenz
As part of the implementation of the STAF, the Federal Tax Administration (FTA) will no longer apply the federal practices for principal companies and Swiss Finance Branches from 1 January 2020.
On 19 May 2019, the electorate approved the Federal Law on Tax Reform and OASI Financing (STAF) (see our contribution of 27 May 2019). The STAF regulations are thus expected to come into force on 1 January 2020. At the same time, the FTA will completely abolish the federal practices for principal companies and Swiss Finance Branches. In contrast to the abolition of the regulations for cantonal status companies, the abolition of these federal practices does not require any legal adjustment.
No new companies have been admitted to these two federal practices since 1 January 2019. The FTA communicated this accordingly on 15 November 2018 (see also the taxlawblog article of 17 November 2018).
The Federal Council's media release of 22 May 2019 on this subject is available here.
The FTA communication on this subject dated 24 May 2019 is available here.
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