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.
Federal Council opens consultation on tonnage tax
At its meeting on 24 February 2021, the Federal Council opened the consultation on the Federal Act on the Tonnage Tax on Sea-going Ships. An introduction in Swiss tax law would be a targeted means of ensuring the competitiveness of Switzerland as a business location in the area of maritime shipping companies.
Tax-approved interest rates 2021 for advances or loans in Swiss francs and foreign currencies
The granting of interest-free or insufficiently interest-bearing advances or loans to participants or third parties related to them constitutes a payment in kind. This shall also apply to translated interest which is paid on the basis of obligations to participants or third parties close to them.
FTA publishes notice on the taxation of non-cash expenses for collective investment schemes
In concretisation of Art. 14 StG, Circular No. 24 of the Federal Tax Administration (FTA) of 20 November 2017 on collective investment schemes as subject to withholding tax and stamp duties states that non-cash expenses in the form of taxable deeds by an FCP, a SICAV or a KmGK to the investor are not subject to turnover tax.
Circulars No. 9 and No. 16 of the FTA repealed
Circular No. 16 of the FTA of 13 July 2007 concerning "Inadmissibility of the tax deduction of bribes" and 1-009-DV-2005 of 22 June 2005 concerning "Proof of business-related expenses in foreign-foreign transactions" have both been repealed and replaced by Circular No. 50 of 13 July 2020.
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.
Adjustment SSK-KS 28: New calculation of the capitalization rate and clarification regarding start-up companies
The Swiss Tax Conference published an updated version of SSK-KS 28 on 3 November, which concerns the calculation of the capitalisation rate for determining the capitalised earnings value and a clarification of the practice for the valuation of start-up companies.
