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.
Tax offences as predicate offences to money laundering - Key takeaways for practitioners
Art. 305bis(1bis) of the Swiss Criminal Code entered into force on 1 January 2016, introducing aggravated tax misdemeanours as predicate offences to money laundering. Though highly debated at the time of its introduction, courts have been noticeably quiet on this provision in the years that followed. This article will analyse the developments since its adoption, outline the legal questions remaining open and forecast what the future may hold for this provision.
Implementation of the tax reform and AHV financing (STAF) in the canton of Solothurn and first practical experiences
With the adoption of the STAF by the Swiss electorate on 19 May 2019, the cantonal tax privileges were abolished in all cantons as of 1 January 2020 and replaced by instruments that are internationally accepted. While the Solothurn electorate approved the STAF at federal level with 58.6% of the vote, it simultaneously rejected the first cantonal proposal to implement the STAF, which would have provided for a significant reduction in the profit tax rate, with 51.4% of the vote. In the second proposal, which was accepted by the electorate, it was possible to agree on a less extensive, but still substantial, reduction of the profit tax rate. For the city of Solothurn, for example, the effective profit tax rate for legal entities will be 15.29% from 2022 (previously: 21.23%). In addition to this reduction in the profit tax rate and the legislative changes prescribed by the Federal Act on the Harmonisation of Direct Taxes of the Cantons and Municipalities (StHG), individual provisions of the Tax Act were adapted to the new accounting law with the implementation of the STAF in the Canton of Solothurn and accompanying measures were adopted in the area of natural persons.
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Federal Council adopts dispatch on the amendments to the DTA with Iran
At its meeting on 23 October 2019, the Federal Council adopted the dispatch on the Protocol of Amendment to the Agreement on the avoidance of double taxation in the area of taxes on income and wealth (DTA) with Iran.
Federal Council adopts dispatch on the Protocol of Amendment to the DTA with Ukraine
At its meeting on 9 October 2019, the Federal Council approved the dispatch on the approval of a Protocol of Amendment to the Agreement to Avoid Double Taxation in the Area of Taxes on Income and Capital (DTA) between Switzerland and Ukraine. The protocol implements the minimum standards in double taxation agreements and also adapts the DTA to the current treaty policy of the two states.
Bundesrat approves further key points of the withholding tax reform
At its meeting on 27 September 2019, the Federal Council approved further key points for the reform of the withholding tax. The consultation is scheduled to open in the first quarter of 2020.
Tax information on STAF published
The Documentation and Tax Information team, in collaboration with the Tax Policy Department, has prepared an article entitled "Federal Law on Tax Reform and OASI Financing" (STAF) for the Tax Information dossier.
Acceptance of tax submission 17 in the canton of Zurich
After the "Federal Law on Tax Reform and OASI Financing" (STAF) was approved at federal level by the people and the cantons with around 66%, the cantonal bill was also accepted with a yes vote of around 56%.
Federal Council rejects popular initiative "Take the pressure off wages, tax capital fairly
At its meeting on 26 June 2019, the Federal Council dealt with the popular initiative "Relieve the burden on wages, tax capital fairly" and instructed the FDF to prepare a dispatch with a motion for rejection without a counter-proposal.
Federal Council adopts additional message on the elimination of the "marriage penalty
On 14 August 2019, the Federal Council adopted the supplementary message on the amendment of the Federal Act on Direct Federal Taxation (Balanced Couples and Family Taxation).
Simplified taxation of the private use of company cars
According to a decision of the Federal Assembly, private use of company cars should be taxable at a flat rate which now also includes travel costs to the place of work. On 28 June 2019, the Federal Department of Finance (FDF) submitted an amendment to the ordinance for consultation.
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Seminar folder ISIS)-Seminar "Change of Status, Patent Box and R&D Effort in Practice" (2021)
Case studies, detailed solutions and slides: Here you will find all documents (workshops and presentations) according to the following description from the ISIS seminar "Status change, patent box and R&D expenditure in practice" on 21 September 2021 under the direction of René Matteotti and Jürg B. Altorfer.
Withholding taxes - What to focus on in the new law?
Workshop by Birgitte Zulauf and Abramo Lo Parco on the occasion of the ISIS) seminar on 13/14 September 2021 entitled "Employee compensation in tax and social security law".
