Emission tax for refurbishments
A distressed company can be restructured in various ways. Balance sheet restructuring measures that do not provide the company with any external funds are not subject to the issue tax. Financial restructuring measures, on the other hand, are subject to the issuance stamp duty of one percent if they are carried out in return for the issue of participation rights or if shareholders make a contribution.
Editorial on the focus "Refurbishments"
In difficult economic times, many companies are faced with considerable financial challenges. The Covid-19 pandemic in particular has led to a number of companies needing to be restructured despite the aid granted, such as loans or hardship compensation. Restructuring a company is a complex process that requires not only strategic and operational measures, but also careful consideration of legal and tax aspects. After all, restructuring a company can lead to significant tax consequences.
Implementation of global minimum taxation - safe harbor transitional rules for investment entities
On January 1, 2024, Switzerland partially introduced the OECD minimum tax by means of the Minimum Tax Ordinance (MindStV). The implementation of the global legal requirements poses considerable challenges for companies due to the complexity of the regulations and the technical implementation in the accounting systems. For this reason, many companies fall back on safe harbor regulations provided by the OECD. In this context, the following article examines whether these also apply to investment entities that are part of the corporate group.
The valuation of participation rights in start-up companies and the principle of equal treatment
The tax valuation of start-ups has been the subject of debate in Switzerland. While a viable solution has been found for the shareholders of start-ups with the current solution, the question of an even wealth tax burden for shareholders in a comparable situation arises. Find out what challenges arise in the valuation of participation rights and what solutions are being discussed to ensure a balanced tax policy.
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.
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.
Federal Council wants to exempt too-big-to-fail instruments of banks from withholding tax by the end of 2026
At its meeting on 28 October 2020, the Federal Council adopted a dispatch on the Federal Act on Withholding Tax with regard to the treatment of interest on too-big-to-fail instruments (TBTF).
FTA publishes update to circular no. 37 "Taxation of employee shareholdings
On 30 October 2020, the FTA published an update to Circular Letter No. 37 "Taxation of Employee Participation".
