The definition of turnover according to the Minimum Tax Ordinance
According to the Minimum Tax Ordinance (MindStV), business units belonging to Switzerland are subject to Swiss supplementary tax if they belong to a group of companies with a turnover of at least EUR 750 million. The concept of turnover as a central prerequisite for subjective tax liability is only rudimentarily regulated in the ordinance. This article examines this concept from different perspectives with reference to various OECD/G20 documents and identifies open questions.
Taxation of spouses in international relations - tax segregation issues
In the zsis) issue of November 2019, the authors dealt with tax law stumbling blocks in the taxation of spouses in international relationships. In this article, they have focused on the tax segregation of international spouses. On the basis of a test scheme with three questions, they show that a systematic procedure is essential for correct tax segregation and that there is still a need for action here on the part of the assessment authority and the courts.
Taxation of employees in the case of cross-border work in the home office
Sarah Bühler, René Matteotti and Peter Vogt address the taxation of international employees and their home office activities. They provide an overview of the existing regulations and pay particular attention to the cross-border commuter agreements with Switzerland's neighboring countries.
Implications of the home office for cross-border commuters between Switzerland and Germany
Working from home has become much more important due to the Corona pandemic. Many employers have found that working from home has proven successful and have introduced regulations that enable mobile working. This also affects cross-border commuters between Germany and Switzerland. A variety of tax regulations, especially in the DTA D-CH, as well as consequences under social security law must be taken into account.
Suspension of the exchange of information with Russia
On 16 September 2022, the Federal Council decided to temporarily suspend the exchange of tax information with Russia based on the public policy reservation of the Administrative Assistance Convention in Tax Matters.
SIF updates overview of tax relief for Turkey
On August 30, 2022, SIF updated the overview of the effects of the agreement (extent of relief) concerning Turkey.
FTA publishes circular regarding the refund of withholding tax on lump-sum pension benefits in relation to Italy
On August 12, 2022, the Swiss Federal Tax Administration (FTA) published the circular "Explanatory notes on the refund of withholding tax on lump-sum pension benefits to recipients resident in Italy".
Memorandum of Understanding between Switzerland and Italy
On July 22, 2022, the State Secretariat for International Financial Matters (SIF) announced that Switzerland and Italy have agreed that the Memorandum of Understanding on the impact of COVID-19 measures on the treatment of earned income from employment under the 1974 DTA and the 1974 Cross-Border Agreement (see our article of June 20, 2020) will remain applicable until the end of October 2022 to all individuals who are residents of a Contracting State and regularly engage in gainful employment in the other Contracting State. Before the end of October 2022, the competent authorities will consult again.
Memorandum of Understanding between Switzerland and France
On July 20, 2022, the State Secretariat for International Financial Matters (SIF) announced that a mutual agreement had been reached between the competent authorities of Switzerland and France regarding the taxation of cross-border workers who work in their home offices as a result of measures taken to combat Covid-19. This agreement implements the joint declaration of June 29, 2022 (see our article of July 2, 2022) without amending it, thus helping to clarify the situation. The Memorandum of Understanding is valid until October 31, 2022, as the two countries agreed on June 29, 2022 to work on the implementation of a permanent agreement on telework applicable to cross-border workers by that date.
Withholding Tax: Adjustment of the FTA's Practice in the Event of a Secondary Adjustment
In a communication dated July 19, 2022, the Federal Tax Administration (FTA) informs about the following effects of the Federal Law on the Implementation of International Agreements in the Tax Field (StADG), which entered into force on January 1, 2022, on the practice of the FTA in the field of withholding tax in the case of a secondary adjustment:
Consultation agreement between Switzerland and Germany concerning non-return days
The State Secretariat for International Financial Matters (SIF) informed on 18 July 2022 that the competent authorities of Switzerland and Germany have agreed on the basis of Art. 26 para. 3 DBA that working days on which a cross-border commuter within the meaning of Art. 15a para. 2 sentence 1 DBA works all day at the place of residence in the State of domicile are not deemed to be working days on which the person does not return to the place of residence after the end of work due to the performance of his or her work. These working days are therefore not considered non-return days within the meaning of Art. 15a, para. 2, sentence 2 DBA.
Withholding tax and international group financing - current practice
Workshop on the occasion of the ISIS) seminar of 20 March 2017 entitled "Current problems of withholding tax law".
Switzerland as a location for the tax planning of international corporations (inbound)
Workshop on the occasion of the ISIS) seminar of 8 March 2018 entitled "Structuring Cross-Border Business Activities
