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.
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.
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.
Zurich: Application for cantonal SV17 implementation submitted
The Government Council of the Canton of Zurich wants to maintain and strengthen the tax competitiveness of Zurich as a business location. To this end, it submits to the Cantonal Council a tailor-made cantonal implementation draft for the cities and municipalities that is compatible with the federal tax proposal 17 (SV17). The template is of vital importance for the entire canton. According to new model calculations, the loss of income is likely to be lower than under the Corporate Tax Reform III (USR III).
Tax bill 17 - Councils agree
The councils are in agreement on tax bill 17, and the last differences regarding the municipal article and the capital contribution principle have been resolved. An overview of the most important key points regarding tax submission 17:
Referendum as final hurdle for tax bill
The AHV tax deal stands. The Council of States has resolved the last differences. Tax bill 17 is thus ready for the final vote at the end of the autumn session.
Parliament revises revised withholding tax law
With the revised Withholding Tax Act, claims should be able to be asserted retroactively only for proceedings that have not yet been legally concluded. On Thursday the National Council resolved this last difference with the Council of States.
Companies should be allowed to deduct fines from taxes
According to the National Council, companies should be allowed to deduct foreign fines and penalties from taxes under certain conditions. The Federal Council and the Council of States had decided otherwise.
Calculation of the participation deduction for too-big-to-fail instruments
On 20 September 2018, the National Council discussed the dispatch on the Federal Act of 14 February 2018 on the calculation of the participation deduction for too-big-to-fail instruments and approved the Federal Council's draft.
New VAT regulation Online shopping abroad could become more expensive from 2019
The Federal Council has decided that mail order companies with a turnover of at least CHF 100,000 in Switzerland must pay VAT. Foreign online merchants today do not have to pay VAT on small consignments with a tax amount of less than five francs. For Swiss mail order companies, however, different rules apply: The consignments are subject to VAT if the company is entered in the VAT register. From 1 January 2019, this unequal treatment will cease.
