zsis) - Center for Swiss and International Tax Law

Should Swiss financial institutions take part in the EU FASTER Directive?

The EU directive on Faster and Safer Tax Relief of Excess Withholding Taxes (FASTER) was formally approved at the end of 2024. The purpose of the directive is to make the refund procedure for withholding tax in the EU more efficient for investors and more secure for tax authorities. Member States will have to transpose the directive into national legislation by December 31, 2028, and these rules will become applicable from January 1, 2030. But what are the implications for Swiss-based financial institutions (FI)?

Automation of cantonal tax assessment

Tax administrations are increasingly automating their processes and making greater use of AI. They are also obliged to do so due to their duty to ensure efficient and effective administrative action. The authors build on this and examine the requirements that progressive automation must meet in light of the principle of legality, the duty to examine and investigate and the duty to justify and where there is a need for legislative action.

Tax-exempt legal entities for profit and supplementary taxes in Switzerland - A legal comparison

Not only the federal, cantonal and communal taxes on profits (DBG, StHG), but also the supplementary taxes (GloBE model regulations, MindStV) recognize the concept of subjective tax exemption for legal entities. The regulations are basically congruent, but there are several case constellations of practical relevance in which the supplementary taxes override the profit tax exemption (e.g. cantonal banks, health insurance companies, newly established companies). The author therefore sees a need for action on the part of legislators and tax authorities.

VAT treatment of fiscal and other financial incentives to promote business locations

As a result of the global minimum tax, Switzerland must rethink its existing fiscal incentives to strengthen the location of business standards. The tax advantage of existing incentives (e.g. special R&D deduction, patent box) loses its effectiveness for affected companies. The first cantons are therefore proposing new instruments such as the Qualified Refundable Tax Credit or state subsidies. This article examines the question of whether such new incentives to promote business locations fall under the VAT term "subsidies and other contributions under public law" and how they should therefore be treated, in particular to what extent a reduction of the input tax deduction should be applied or can be waived.