Zurich shows more flexibility for start-ups
Peter von Burg
On 5 November 2019, the Finance Directorate and the Economic Directorate of the Canton of Zurich published a joint press release stating that there should be no tax obstacles to an agreed change in the ownership structure of founding shareholders.
The press release concerns so-called "Dynamic Equity Splits", i.e. founders agree among themselves to adjust their initially subscribed investment quotas during a certain period of time in order to do justice to the individual value creation of each founder. The cantonal tax office has a positive attitude towards this objectively convincing method and will accept it. For reasons of legal certainty, it is recommended to have such agreements checked in advance.
The press release is available here.
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