What does the Federal Act on Tax Reform and AHV Financing (formally "Tax Proposal 17") mean for my business?
The Federal Act on Tax Reform and AHV Financing aims to maintain and further strengthen the fiscal attractiveness of Switzerland as a business location in the long term. By introducing a comprehensive reform package, the Federal Council is seeking to achieve international acceptance of Swiss corporate tax whilst ensuring the competitiveness of businesses in Switzerland in the long term.
The following principal measures will ensure the fiscal attractiveness of Switzerland as a business location in the long term:
- Introduction of a patent box: income from licences, together with research and development expenses, should qualify for tax benefits.
- Transitional rule: companies can disclose hidden reserves (goodwill) by way of a “step-up”, and write them off for tax purposes. Taxable profit will be reduced as a result.
On 19 May 2019, the Swiss electorate adopted the tax package with 66.4 % favorable votes. The reform will hence enter into force on 1 January 2020.
We will be happy to help you to understand the fiscal consequences for your business and show you how to adopt an active approach to the reform. Use our tool or send us your contact details today so that we can arrange a personal appointment with you.
PwC step-up calculator
In order to support companies in an accessible, easy-to-use and efficient way in determining their potential disclosure potential, PwC launched the Step-up Calculator in 2017. Since then, many companies have taken the opportunity to estimate how much tax they could save as a result, in order to plan for 2020.
With the effective date coming up and the cantonal implementations rolling in, we will discontinue the step-up-calculator. In case you would like to discuss your step-up potential with us, please do not hesitate to contact us.