Swiss Corporate Tax Reform III

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Swiss Corporate Tax Reform III

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Switzerland is considering a comprehensive corporate tax reform, referred to as “Corporate Tax Reform III”, which will have a fundamental impact on the country’s tax system and existing tax regimes. The reform aims to secure and strengthen Switzerland`s competitiveness and attractiveness as an international location for corporations.

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Switzerland is undertaking the most comprehensive corporate tax reform in the last fifty years (Corporate Tax Reform III) that will among others result in the phasing out of the so-called holding, mixed company, domiciliary company regimes as well as the principal company regime and finance branch regime anticipated in the 2018 – 2020 timeframe, i.e. most likely in 2019 and earliest as from January 1, 2018.

The overriding objective of the reform is to further strengthen the tax competitiveness of Switzerland as an international location for corporations.

Various measures to replace existing regimes are being recommended, such as:

  • A “license box” for income arising from the exploitation and use of intellectual property; 
  • A notional interest deduction on equity; and 
  • A general reduction of the headline corporate tax rate. 

Most companies in Switzerland will in one way or another be affected by these changes, will have to adapt and to decide how to best benefit from and transition into the new regimes. In addition, the new regimes provide new opportunities and may prompt many companies to look at Switzerland as a possible location for certain activities.

Learn more about the current status of discussion and prepare your company for the future.

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