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.
Restructuring and insolvency - legal requirements under the revised stock corporation law
As part of its management and financial responsibility, the Board of Directors is obliged to monitor the financial situation of its company. If a company gets into financial difficulties, it must take measures to avert insolvency or at least prevent the damage from increasing. The revised Stock Corporation Act, which came into force on January 1, 2023, imposes specific duties on the board of directors in the event of imminent insolvency, half capital loss and over-indebtedness. This article deals with the legal requirements and shows to what extent the revision has brought changes to these restructuring-related provisions and what new questions arise in practice.
Restructuring merger between sister companies
This article first explains the different concepts of the need for reorganization under commercial law and tax law as well as the requirements for the tax recognition of the assumption of loss carryforwards in the context of a reorganization merger between sister companies. The tax consequences for the merged companies and for the joint shareholders are then also examined using examples.
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 approves coronavirus package of measures
At its meeting on 20 March 2020, the Federal Council approved various measures to cushion the economic consequences of the coronavirus. The tax measures are as follows:
OECD publishes report on transfer prices in financial transactions
On 11 February 2020, the Organisation for Economic Cooperation and Development (OECD) published a report containing guidelines on the transfer pricing aspects of financial transactions.
Circular letter 34 of the Swiss Tax Conference (SSK)
On 15 January 2020, the Swiss Tax Conference (SSK) published Circular Letter 34 on the "Intercantonal tax separation of companies claiming the deductions provided for in the STAF" for the additional deductions newly introduced for state and municipal taxes - but not for direct federal taxes - following the entry into force (1 January 2020) of the Federal Law on Tax Reform and OASI Financing (STAF) of 28 September 2018.
Tax-deductible interest rates 2020 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 Circular Letters 22a and 23a concerning the partial taxation of income from investments held as private and business assets
On 31 January 2020, the Federal Tax Administration (FTA) published Circular Letters No. 22a "Partial Taxation of Income from Participations as Part of Private Assets and Restriction of Debt Interest Deduction" and No. 23a "Partial Taxation of Income from Participations as Part of Business Assets and Participations Declared as Business Assets".
OECD publishes statement on taxation of multinational companies
On 31 January 2020, the Organisation for Economic Cooperation and Development (OECD) published a statement on taxation of multinational (digital) companies, according to which an agreement should be in place by the end of 2020 (see also taxlawblog contributions of 12 October 2019 and 9 November 2019).
