Charitable foundations in tax law - open questions
Non-profit status depends largely on the framework conditions. If these are right, people are willing to make a contribution - be it through donations or volunteering. Tax law provides important incentives: it exempts charitable organizations from tax liability and allows donations to charitable organizations to be deducted from taxable income. Tax law has thus made a significant contribution to the strong growth of the charitable sector in recent years. The foundation sector is booming.
Tax exemption for charitable organizations with a few Basel treats
The charitable sector is of enormous importance in Switzerland. With around 13,900 foundations, Switzerland has the highest density of foundations in Europe. These foundations are managed by around 62,000 foundation board members. Foundation assets are estimated at CHF 140 billion. With distributions of CHF 1.5 to 2.0 billion per year, charitable foundations in Switzerland make a valuable contribution. The recipe for success is in particular the favorable legal framework in Switzerland, first and foremost the standards for tax exemption due to charitable status.
Tax exemption for charitable institutions - New practice definitions in Zurich
This article discusses the new practice in the Canton of Zurich regarding the tax exemption of charitable institutions, which has been published since February 2024. First, procedural issues, in particular the application for tax exemption, are discussed. It then looks at the key points of the practice determinations, i.e. compensation for governing bodies, activities abroad and entrepreneurial funding models.
Generational change in the foundation landscape - a look at charitable foundations
This article deals with the tax treatment of donations by founders and sponsors. In particular, it examines the extent to which the establishment of a charitable foundation can be interesting from a tax perspective in addition to social or socio-political motives, but also what specific obligations and challenges are associated with this. It also examines the question of whether legal entities in particular, such as foundations, can make donations.
Compensation paid by Swiss companies to foreign directors
This video provides information on the possible tax and social security implications of a board of directors resident in an EU country in the case of a Swiss company limited by shares if the board of directors is also self-employed in its country of residence.
National Council wants to prevent double taxation of companies
The National Council wants to do something about double taxation of companies. To this end, the cantons should be empowered to reduce the wealth tax.
New tax rule for systemically important banks comes into force
The federal law on the calculation of the participation deduction for systemically important banks will enter into force retroactively as of 1 January 2019. This was decided by the Federal Council at its meeting on 8 March 2019.
National Council wants to facilitate intra-group financing
The Federal Council should resume work on the reform of the withholding tax - with a view to tax relief for intra-group financing. This is what the National Council demands. On Wednesday he adopted a motion from his economic commission. Opponents warned of tax shortfalls.
Adjustment of the price list regarding the Direct Federal Tax 2018
On 11 March 2019, the Swiss Federal Tax Administration (FTA) published an adjustment to the share price lists (ICTax) regarding the Federal Direct Tax 2018.
Referenda against STAF proposal and arms directive
The referenda against the Federal Law on Tax Reform and OASI Financing (STAF) and against the Federal Decree on the amended EU Arms Directive (further development of the Schengen acquis) have been formally adopted.
Robotisation does not endanger tax revenues
Robotisation does not jeopardise tax revenues and should not be taxed specifically for the time being. This is the conclusion of the report on a prospective study, which the Federal Council approved at its meeting on 7 December 2018.
Federal Council wants to further improve framework conditions for Blockchain/DLT
At its meeting on 7 December 2018, the Federal Council adopted a report on the legal framework for block chain and distributed ledger technology (DLT) in the financial sector. The report shows that the Swiss legal framework is well suited to deal with new technologies, including block chaining. Nevertheless, there is still a need for adjustment in some areas. The Federal Council also took note of the analysis of an interdepartmental working group on money laundering and terrorist financing risks of crypto assets.
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.
