Reform of the withholding tax - can the Gordian knot be untangled?
With its dispatch of April 2021 on the reform of the withholding tax, the Federal Council is making a new attempt to strengthen the domestic debt capital market. The bill is economically necessary and suitable for finding a pragmatic solution that is acceptable to the majority. Parliamentary consultations have already begun.
Withholding tax and debt capital, including the planned revision of the Withholding Tax Act
In terms of withholding tax, we focus on withholding tax on the income from equity securities. In particular, pecuniary benefits occupy us and often lead to emotionally profound experiences and contacts with withholding tax. Similarly, we constantly deal with the question of the refund of withholding tax owed, including the issue of "How can I repatriate profit reserves subject to withholding tax abroad?
Withholding tax reform - "more than meets the eye
The withholding tax reform bill introduced with the Federal Council Dispatch published on 14 April 2021 aims to largely abolish withholding tax on interest income and, as an accompanying measure, to abolish the turnover tax on Swiss bonds. In this context, implementation issues at the banks and financial institutions, the effects of the reform on structured products and group financing, the treatment of substitute payments in securities lending/borrowing transactions and indirect interest investments are examined in greater detail.
Editorial for the special issue "Implementation of the STAF
At zsis we are pleased to be able to provide an overview of the implementation of the corporate tax reform in the individual cantons. The authors not only provide information on the reduction of the profit tax rate, but also highlight the change from tax privileges to ordinary corporate taxation. They also report on the other cantonal particularities.
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Entry into force of amendments to tax laws and regulations
The Federal Tax Administration has updated the lists of changes to laws and ordinances on direct federal tax, value added tax, withholding tax and stamp duties. The list contains amendments to decrees in tax and duty law in which the Federal Tax Administration is significantly involved or for the implementation of which it is responsible. The list also includes legislative and regulatory projects that have not yet been completed.
Adaptation of the circular on the implementation of the tax differentials for municipal taxes
The district letter of the cantonal tax office to the municipal tax offices on the implementation of the tax deductions for municipal taxes has been adapted to the immigration principle and the current responsibilities.
Reform of the withholding tax
The Economic Commission of the National Council discussed further work on the parliamentary initiative 17,494 after the sister commission of the Council of States had approved its decision to follow this initiative (cf. WAK-S press release of 20 August 2018). In this context, she discussed in particular with the head of the responsible department the Federal Council's plans for reforming the withholding tax and changing from the debtor to the paying agent principle. Subject to the approval of the Office of the National Council, the commission decided by 16 votes to 8 to set up a sub-commission and to instruct it to prepare a preliminary draft for the implementation of the parliamentary initiative. The subcommittee should coordinate its work with that of the Federal Council.
Federal Council repeals the transitional provision in the Ordinance on the International Automatic Exchange of Information in Tax Matters
At its meeting on 7 November 2018, the Federal Council decided to repeal the transitional provision on the term "participating states" in the Ordinance on the International Automatic Exchange of Information in Tax Matters as of 1 January 2019. This will implement an international requirement.
Commission majority against abolition of beer tax
The Economic Commission of the National Council dealt with a parliamentary initiative by National Councillor Claudio Zanetti to abolish the beer tax (17,469) and decided by 16 to 8 votes not to follow the initiative. The majority argue that the industry itself is satisfied with the current regime of graduated beer tax, which favours small independent brewers, and does not want any change. Moreover, abolition would send the wrong signal in terms of prevention. The minority is annoyed by the unequal tax treatment of beer and wine and would like to abolish the tax.
Federal practices for principal companies and Swiss Finance Branches from 1 January 2019
As part of the Tax Bill and OASI Financing (STAF), the Federal Tax Administration (FTA) will no longer apply the federal practices for principal companies and Swiss Finance Branches to companies seeking to take advantage of these practices for the first time beginning in 2019.
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.
Parliament does not want to save hydropower with "dirty electricity tax
Parliament does not want to introduce a tax on "dirty electricity". Following the National Council, on 26 September the Council of States also rejected a professional initiative by the Canton of Geneva. This proposes to use the yield for hydropower and other renewable energies. That settles the matter.
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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".
