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Tax Reform Favourable Towards Corporates


The Swiss Federal Council has put together a task force for the anticipated Corporate Tax Reform III (CTR III) comprising of representatives from the Confederation and the Cantons. The task force will be presided by the Federal Council for Finance and will also include working groups with representatives from the industry as well as tax advisers. Taxand Switzerland explores what goals the CTR III sets out to achieve, and how these affect multinationals.

CTR III shall provide solutions to resolve the controversy between the EU and Switzerland regarding special cantonal tax regimes for companies (domiciliary, mixed and holding companies). Furthermore, the aim of the CTR III is to strengthen Switzerland's position in international tax competition and to remove unnecessary tax burdens from Swiss tax resident companies.

The CTR III envisages the following elements:

  • Abolishment of issuance stamp duty
  • New participation exemption system
  • Full use of losses
  • Other further improvements

Discover more about how CTR III is designed to resolve tax controversy


Taxand's Take

The envisaged tax reform shows that Switzerland will consistently improve its corporate tax system and will continue to remain a very attractive business location for nationals and multinationals in the future. Switzerland will make sure that the corporate tax burden for multinationals in Switzerland will still be very competitive and will certainly grant grandfathering clauses for the adaption under the new tax rules, in particular in view of the negotiations regarding the tax controversy with the EU.

Your Taxand contact for further queries is:
Roger Dall'O
T. +41 44 215 77 31

Taxand's Take Author