Relocation of businesses, functions and assets for profit tax purposes under VAT law
Within the framework of the STAF, a legal basis for the recording of cross-border inbound and outbound relocations of operations, functions and assets has been created at the federal, cantonal and municipal level. The question arises as to how such relocations should be treated for VAT purposes. The treatment is particularly relevant for inbound relocations in industries with a reduced input tax rate. As an outflow of the "dual entity" approach, relocations within the same legal entity between headquarters and permanent establishment are of interest.
Editorial for the special issue "Implementation of the STAF
At zsis we are pleased to be able to provide an overview of the implementation of the corporate tax reform in the individual cantons. The authors not only provide information on the reduction of the profit tax rate, but also highlight the change from tax privileges to ordinary corporate taxation. They also report on the other cantonal particularities.
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.
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.
Strengthening Switzerland as a business location in the context of OECD work
The Federal Council has taken note of the status of the OECD/G20 work on global corporate taxation.
Federal Council adopts dispatch on reform of withholding tax
The Federal Council wants to strengthen Switzerland as a location for the debt capital market and for group financing activities in all sectors.
FTA extends flat-rate taxation for the private use of business vehicles
On 17 March 2021, the FTA published the amendment to Art. 5a of the Professional Costs Ordinance. On the one hand, the current flat rate will be regulated in the Professional Costs Ordinance from 1 January 2022, and on the other hand, the flat rate will now take into account commuting costs and will be increased from 0.8% to 0.9% per month (or from 9.6% to 10.8% per year) for this purpose.
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.
Asset deal versus share deal for corporations
Workshop on the occasion of the ISIS) seminar on 23 November 2017.
