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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Selected parliamentary business in the area of taxation at federal level (7 April 2021)
The Federal Tax Administration updated the selected parliamentary business in the tax area at federal level on 7 April 2021.
FTA publishes legislative and ordinance amendments 2022-2024
The Federal Tax Administration (FTA) has updated the lists of legislative and ordinance amendments relating to direct federal tax, value added tax, withholding tax and stamp duties. The list contains amendments in which the FTA is significantly involved or for whose implementation it is responsible.
Canton of residence responsible in future for withholding tax on heirs
An amendment to the Ordinance on Withholding Tax is due to come into force on 1 January 2022, according to which the heirs of an inheritance that has not yet been distributed will be able to reclaim withholding tax on inheritance income in their canton of residence (previously: last canton of residence of the deceased).
Expert group formulates tax fields of action
The group of experts on Switzerland as a tax location, which is made up of various representatives of the Confederation, the cantons and the business community, has formulated 16 fields of action in which it sees potential for tax improvements in Switzerland.
Federal Council is against the widespread abolition of stamp duties
The Commission for Economic Affairs and Taxes (WAK-N) has proposed further steps to abolish stamp duties. These were rejected by the Federal Council at its meeting on 18 November 2020. However, it supports the demand to abolish the emissions tax. It also wants to abolish the turnover tax on domestic bonds as part of the planned withholding tax reform.
Federal Council adopts dispatches on the amendments to the DTAs with Liechtenstein, Malta and Cyprus
On 11 November 2020 the Federal Council adopted the Dispatches on the Protocols of Amendment to the double taxation agreements (DTAs) with Liechtenstein, Malta and Cyprus. The protocols implement the DTA minimum standards.
Federal Council puts revised law and ordinance on AIA into force
In the course of an examination of the Global Forum's audit of Switzerland, recommendations were made. The amendments take these into account and include in particular the abolition of the exemption for condominiums communities and an adjustment of the applicable due diligence obligations.
Federal Council adopts dispatch on the Federal Act on the Implementation of International Agreements in the Tax Field
On 4 November 2020, the Federal Council adopted the dispatch on the totally revised Federal Act of 1951 on the Implementation of Interstate Agreements of the Confederation for the Avoidance of Double Taxation (new: StADG).
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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".
