Cross-border commuter regulation Switzerland-Liechtenstein
The double taxation agreement between Switzerland and Liechtenstein contains a special rule for cross-border commuters, according to which the income from employment earned in the State of activity is allocated to the State of residence for taxation. If, on the other hand, an employee in a cross-border context does not meet the criteria established for cross-border commuters, the earned income is allocated for taxation to the State of activity and the State of residence on a pro rata basis in accordance with the general principles. Against this background, employers who employ cross-border commuters from Liechtenstein or Switzerland have different clarification and declaration obligations.
Tax pitfalls in the dissolution of a community of preferential heirs
Particularly from a tax law perspective, caution is required with such conversions or investments, as a community of anticipated heirs could qualify as a simple partnership under tax law, the dissolution of which would result in the settlement of deferred real estate gains tax. The members of a community of anticipated inheritance are often not aware of these tax consequences.
Charitable foundations - explosive tax law issues
Legal entities that meet the respective requirements of Art. 56 lit. e, g and h of the Federal Law on Direct Federal Tax (DBG) generally benefit from a subjective tax exemption. If legal entities are subjectively tax-exempt due to the pursuit of charitable purposes, according to Art. 56 lit. g DBG, the acquisition and management of "significant capital investments in companies" are only permitted under restrictive conditions. The Federal Supreme Court recently had to assess the question under which circumstances the holding of a significant equity interest in an operating company by a charitable foundation precludes a subjective tax exemption.
Automatic exchange of information and (unpunished) voluntary declarations
Since 1 January 2010, taxpayers in Switzerland have been able to go unpunished when they report tax evasion for the first time. Since then, tax transparency has increased internationally. Switzerland is pursuing the approach of implementing the international minimum standards. This now also includes the automatic exchange of information. On the way to a transparent taxpayer, the question arises as to whether the possibility still exists or should exist for taxpayers to disclose previously untaxed assets without having to expect a fine.
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Greater fiscal consideration of the costs of third party childcare
The Economic Commission of the National Council has accepted without opposition the Federal Council's Dispatch 18.050 concerning the tax recognition of third-party childcare costs. This proposal is related to the initiative for skilled workers and is intended to promote the employment of women. The Commission considers that taxing the cost of external care can be an argument for women wishing to enter the labour market, as the cost of care is too high for many young families. In the overall vote, the Commission approved the unchanged proposal by 11 votes to 8 with 5 abstentions. However, a minority of the Commission wishes to limit the deduction to the proven costs of institutional provision of childcare outside the family (rejected by 18 votes to 5), while a second minority demands a deduction not only for third-party but also for self-care of children (rejected by 13 votes to 10). The transaction is expected to be dealt with in the spring session 2019.
Marriage penalty: External expert recommends a broader data basis for the FTA
The statistical basis for direct federal tax, on which the Federal Tax Administration (FTA) can draw, is insufficient. Therefore, especially the estimation of the number of persons affected by the marriage penalty remains subject to uncertainty. This is the conclusion of an external report commissioned by the Federal Department of Finance (FDF), the results of which were presented to the Federal Council at its meeting on 7 November 2018.
Remuneration interest rate for direct federal tax remains the same
The Federal Department of Finance (FDF) has decided to continue not to pay any refund interest for the calendar year 2019 on amounts of direct federal tax paid early.
National Council maintains mandate for tax deductions
The National Council insists that the Federal Council implement an adopted motion on the taxation of foreigners. On 27 September 2018 he refused to write them off.
Harmonisation of interest rates for federal tax exemptions
On 10 September 2018, the Council of States adopted the motion "Harmonisation of interest rates in federal tax decrees" with the following amendment: "The Federal Council is instructed to harmonise interest rates in federal tax decrees in such a way that a generally applicable default and refund interest rate is established".
Stop the tax penalty in pillar 3b. Tax the income share instead of the capital contribution in the case of a capital withdrawal
On 10 September 2018, the Council of States adopted the motion "Stop the tax penalty in pillar 3b. In the case of a capital withdrawal, tax the share of income instead of the capital contribution" with the following amendment: "The Federal Council is instructed to submit to parliament an amendment to the Federal Tax Act (DBG) and the Tax Harmonisation Act (StHG) in order to achieve a flexibilisation of the flat-rate share of income on all benefits (periodic benefits, surrender, refund) from life annuities and life insurance policies, adapted to the respective investment conditions.
WAK-S has defined key points for the system change in the taxation of residential property
After detailed discussion and extensive clarifications, the WAK-S decided how the system change in imputed rental value should be implemented and commissioned the administration and secretariat to prepare a preliminary draft.
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Usufruct and right of residence as elements of estate planning for real estate
Workshop by Daniel Bader and Hanna Brozzo on the occasion of the ISIS) seminar on November 12, 2024 entitled "Usufruct and right of residence as design elements of estate planning for real estate "
Tax issues relating to private investment in real estate
Workshop by Petra Caminada and Branko Balaban on the occasion of the ISIS) seminar on November 12, 2024 entitled "Tax issues relating to private investment in real estate"
ISIS) seminar folder "Current problems in the taxation of private investments" (2024)
All documents from the ISIS) seminar "Current problems in the taxation of private investments" from September 23 - 24, 2024 under the direction of Andrea Opel in one PDF document. Case studies, detailed solution notes and slides: Here you will find all documents of the individual workshops according to the following content description.
