Social security aspects of home office
Home office work, which was imposed by the authorities during the pandemic, gave an additional boost to teleworking and the associated flexibilization of work. Even after the pandemic, home office remains widespread in many areas. Employees appreciate the new flexibility and no longer want to do without it. This also applies to the numerous cross-border commuters. The following article clarifies social security issues in connection with home office, especially in cross-border situations.
Combating the misuse of letterbox companies
On 22 December 2021, the European Commission published a draft directive to combat the abusive use of letterbox companies within the EU. The directive, which is to be classified under ATAD III, imposes reporting obligations on letterbox companies and leads to the loss of tax benefits if certain substance criteria are not met.
Taxation of the Digital Economy - OECD Agreement on Global Tax Reform (Pillar One and Two)
137 countries of the Organization for Economic Co-operation and Development (OECD) - including Switzerland - agreed to a comprehensive global tax reform on 8 October 2021. The global tax reform aims to introduce a worldwide redistribution of profits of multinational corporations with a turnover of more than 20 billion euros (Pillar One) and a global minimum taxation of 15% for multinational corporations with a turnover of more than 750 million euros (Pillar Two). The implementation of the reform will pose major challenges for companies, but also for states. Pillar One will result in multinationals becoming taxable in a state even if they have no physical facilities such as offices or premises in that state. At least 25% of profits exceeding 10% of turnover will be taxed in the states where the turnover is generated, irrespective of the existence of a physical presence. Pillar Two will introduce a global minimum tax of 15%. The tax rate will be calculated at the state level and not at the individual company level. In addition, the calculation of the global minimum tax will be based on taxable profit and taxable net income, an international accounting standard and not local legislation, such as Swiss commercial law. This article explains how Pillar One and Two work, the currently envisaged implementation of the reform in Switzerland, its impact on global tax and location competition and on Swiss-based companies.
Extraterritorial change of status through the introduction of the Income Inclusion Rule
With the introduction of the Income Inclusion Rule (IIR), Switzerland must in future also tax previously untaxed hidden reserves and goodwill of low-taxed or non-taxed foreign subsidiaries upon realisation that were created before 1 January 2024. This will result in a change of status analogous to STAF. This paper is a thought experiment on whether this change of status would not also have to result in a step-up for profit tax purposes from a constitutional and tax system point of view.
Memorandum of Understanding between Switzerland and Italy concerning COVID-19 measures
On 20 June 2020, the State Secretariat for International Financial Matters (SIF) reported the conclusion of a new memorandum of understanding between Switzerland and Italy concerning COVID-19 measures.
Consultation agreement with Germany on the taxation of cross-border workers and state support services
On 11 June 2020, the State Secretariat for International Financial Matters SIF concluded a new consultation agreement between Switzerland and Germany on the taxation of cross-border commuters and the treatment of state support services.
Council of States approves various double taxation agreements
At its meeting on 4 June 2020, the Council of States approved various double taxation agreements (DTAs).
SIF updates tax relief tables for various countries (4 June 2020)
On 4 June 2020, the State Secretariat for International Financial Matters (SIF) updated the overviews of tax relief for various countries. This concerns the overviews of the effects (extent of the relief) of the agreements with Bangladesh, China, Chinese Taipei, India, Ireland, Malaysia, the Philippines, Singapore and Sri Lanka.
FDK publishes statement on the consultation of the federal law on withholding tax
On 29 May 2020, the Conference of Cantonal Finance Directors (FDK) published a statement on the consultation process for the federal law on withholding tax.
New OECD report on post-pandemic planning for tax administrations published
On 26 May 2020 the OECD published the new report "Tax Administration Responses to COVID-19: Recovery Period Planning". This third COVID-19 report addresses the main issues that tax administrations should consider when planning the recovery period under COVID-19. According to the OECD report, early planning for the resumption of entrepreneurial activity is necessary for both tax administrations and taxpayers in order to identify the most important challenges and opportunities at an early stage and to take preparatory measures.
Automatic exchange of information on financial accounts - Federal Council publishes the audit report on 33 partner states
On 20 May 2020, the Federal Council submitted the audit report on the standard-compliant implementation of the Automatic Exchange of Information to the relevant parliamentary commissions (WAK-N and WAK-S) for consultation. The report examined compliance by the partner states with the audit criteria of the Federal Decree on the Audit Mechanism of 6 December 2017, such as whether data confidentiality is guaranteed.
Consultation agreement with France on the taxation of frontier workers in the case of tele- or home-office work
On 14 May 2020, the State Secretariat for International Financial Matters SIF reported the conclusion of a new consultation agreement between Switzerland and France on the taxation of cross-border commuters in the case of teleworking or home office work.
Possibilities and limits of tax planning for investments of natural persons - national and international
Workshop on the occasion of the ISIS seminar on 9/10 September 2019 entitled "Tax planning in the area of conflict between cost optimisation, tax compliance and Good citizenship - opportunities and risks".
Tax planning between legality and crime: tax evasion, abuse of rights, treaty abuse and tax crime - national and international
Workshop on the occasion of the ISIS seminar on 9/10 September 2019 entitled "Tax planning in the area of conflict between cost optimisation, tax compliance and Good citizenship - opportunities and risks".
Possibilities and limits of corporate tax planning - national and international
Workshop on the occasion of the ISIS seminar on 9/10 September 2019 entitled "Tax planning in the area of conflict between cost optimisation, tax compliance and Good citizenship - opportunities and risks".
Possibilities and limits of tax planning for inheritances and gifts - national and international
Workshop on the occasion of the ISIS seminar on 9/10 September 2019 entitled "Tax planning in the area of conflict between cost optimisation, tax compliance and Good citizenship - opportunities and risks".