Overview of STAF implementation at federal and cantonal level
Following an unprecedented legislative process, the Swiss people adopted the Federal Law on Tax Reform and OASI Financing (STAF) on 19 May 2019, thus restoring international acceptance of our tax system. In addition to the abolition of the special regulations for status companies, the introduction of the patent box, the regulation for hidden reserves at the start of tax liability and the approval of special deductions for research and development have helped to strike the right balance between international acceptance and maintaining the attractiveness of the tax location.
The implementation of the STAF in the cantons of Eastern Switzerland - selected topics of profit and capital taxation
The eastern Swiss cantons of St. Gallen (SG), Thurgau (TG), Appenzell Ausserrhoden (AR) and Appenzell Innerrhoden (AI) have implemented a number of changes in the taxation of profits and capital as part of the STAF as of 1 January 2020. The present article examines individual voluntary measures and measures not harmonized in the STAF. The analysis focuses on the adjustments in profit tax rates and capital tax, past and future tax relief, the additional deduction for research and development expenses, and a selection of special practical features.
Implementation of the STAF in the Canton of Zurich
Although the Canton of Zurich dealt with the implementation of the Federal Law on Tax Reform and OASI Financing ("STAF") at an early stage and issued various practice notes, various implementation issues still arose in the months following its entry into force. This article deals with the current implementation practice of STAF in the Canton of Zurich, with a focus on the change of status and deductions for self-financing. The practical application of the patent box and the research and development deduction is still subject to announcements by the Zurich tax office.
Implementation of the STAF in the Canton of Ticino
On 1 January 2020, the Federal Act on Tax Reform and Financing of the OASI (STAF) (Riforma fiscale e finanziamento dell'AVS, RFFA) entered into force. Among other things, the federal law modified certain provisions of the Federal Direct Tax Act (DBG) and the Direct Tax Harmonisation Act (StHG). In doing so, the Confederation leaves the cantons some leeway in implementing the STAF in their own tax legislation. This article analyses the implementation of the STAF by the Canton of Ticino.
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Renewed consultation agreement with Germany on the taxation of cross-border workers and state benefits
Germany and Switzerland have amended the consultation agreement again with the date 27 April 2021.
Entry into force of the double taxation agreements with Brazil and Saudi Arabia
The double taxation agreement (DTA) in the area of taxes on income between Switzerland and Brazil entered into force on 16 March 2021 and the DTA with Saudi Arabia in the area of taxes on income and assets entered into force on 1 April 2021. Both DTAs are effective from 1 January 2022.
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.
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