Charitable foundations - explosive tax law issues
Legal entities that meet the respective requirements of Art. 56 lit. e, g and h of the Federal Law on Direct Federal Tax (DBG) generally benefit from a subjective tax exemption. If legal entities are subjectively tax-exempt due to the pursuit of charitable purposes, according to Art. 56 lit. g DBG, the acquisition and management of "significant capital investments in companies" are only permitted under restrictive conditions. The Federal Supreme Court recently had to assess the question under which circumstances the holding of a significant equity interest in an operating company by a charitable foundation precludes a subjective tax exemption.
Sale of own shares - a service within the meaning of the VAT Act?
In its ruling 2C_891/2020 of 5 October 2021, the Federal Supreme Court upheld the Federal Administrative Court and decided, contrary to administrative practice, that the sale of treasury shares does not constitute a supply of services within the meaning of Art. 18 para. 1 VAT Act and is therefore outside the scope of application of VAT. This article is a brief analysis of the Federal Supreme Court's decision.
Automatic exchange of information and (unpunished) voluntary declarations
Since 1 January 2010, taxpayers in Switzerland have been able to go unpunished when they report tax evasion for the first time. Since then, tax transparency has increased internationally. Switzerland is pursuing the approach of implementing the international minimum standards. This now also includes the automatic exchange of information. On the way to a transparent taxpayer, the question arises as to whether the possibility still exists or should exist for taxpayers to disclose previously untaxed assets without having to expect a fine.
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 implementation of OECD/G20 minimum taxation
On 11 March 2022, the Federal Council decided that the OECD/G20 project on the taxation of the digital economy in Switzerland should be implemented in stages with a constitutional norm and transitional provisions. The corresponding consultation will last until 20 April 2022.
Circular No. 5a Restructuring
The new circular no. 5a on tax-neutral reorganisations was published on 1 February 2022. The following key adjustments were made in the circular:
Tax-approved interest rates 2022 for advances or loans in Swiss francs and in foreign currencies
On 27 January 2022, the FTA updated the circular on the tax-recognised interest rates in Swiss francs, and on 28 January 2022, the circular on the recognised interest rates 2022 in foreign currencies.
OECD Minimum Tax: Implementation with a Constitutional Amendment
On 13 January 2022, the Federal Council announced that it would like to implement the agreed minimum tax for certain companies with a constitutional amendment. A temporary ordinance is to ensure that this can come into force on 01 January 2024. Subsequently, the law will be enacted through the ordinary legislative process.
FTA announces imputed interest rate on security equity 2022
On 6 January 2022, the FTA announced that the imputed interest rate on the security capital pursuant to Art. 25abis para. 4 sentence 1 StHG, which corresponds to the yield on 10-year federal bonds on the last trading day of the calendar year preceding the start of the tax period, will continue to be 0% for the 2022 tax year due to the negative yield.
Dossier on tax information "Cryptocurrency" published
The FTA has published a new article "Cryptocurrency" for the tax information dossier.
FTA publishes updated working paper on cryptocurrencies and ICOs/ITOs
The FTA has updated its working paper on cryptocurrencies and initial coin/token offerings (ICOs/ITOs) as a subject of wealth, income and profit tax, withholding tax and stamp duties. It reflects the state of practice as of the end of 2020.
Asset deal versus share deal for corporations
Workshop on the occasion of the ISIS) seminar on 23 November 2017.
