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.
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.
FTA - Memorandum of Understanding between Switzerland and Australia
On 15 September 2020 the Memorandum of Understanding on the procedural rules of the arbitration procedure provided for in Article 24 (Mutual agreement procedure) paragraph 5 of the Double Taxation Convention Switzerland - Australia was signed.
National Council adopts bill on electronic procedures in tax matters
On 21 September 2020, the National Council adopted the Federal Law on Electronic Procedures in the Tax Field, with the following amendments in particular.
Updated overview of changes to laws and regulations that come into force in the years 2021-2023
The Federal Tax Administration (FTA) has updated the list of changes to laws and ordinances on direct federal tax, value added tax, withholding tax and stamp duties.
Tax policy agenda: First meeting of the "Expert Group on Switzerland as a Tax Location
On behalf of Finance Minister Ueli Maurer, a tax policy agenda is to be adopted by the end of 2020.
Federal Council comments on various motions, postulates and interpellations
In the course of August 2020, the Federal Council commented on various motions, postulates and interpellations (tax amnesty, micro-tax, VAT, etc.).
Federal Council adopts messages on the new DTA with Bahrain and on the amendments to the DTA with Kuwait
At its meeting on 26 August 2020, the Federal Council adopted the messages on a new double taxation agreement (DTA) with Bahrain and on the Protocol of Amendment to the DTA with Kuwait.
Amendment of the Ordinance on the Conscription Compensation Levy (WPEV)
At its meeting on 12 August 2020, the Federal Council decided that all civil defence days worked should be counted towards the reduction of the substitute levy. The amended ordinance on the military service exemption tax will come into force on 1 January 2021.
Federal Council opens consultation procedure on the partial revision of the VAT Act and the VAT Ordinance
At its meeting on 19 June 2020, the Federal Council opened the consultation procedure on the partial revision of the Value Added Tax Act (MWSTG) and the Value Added Tax Ordinance (MWSTV). Against the background of the further development of VAT in the digitalised and globalised economy, it proposes, among other things, comprehensive taxation of mail order platforms and simplification of invoicing for SMEs. The proposal also implements other parliamentary proposals.
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".
