On 19 May 2019, Swiss voters have approved the Federal Act on Tax Reform and AHV Financing (TRAF). It entered into force on 1 January 2020.
Expected cantonal votes
The tax reform provides for an abolishment of the privileged tax regimes on cantonal level (holding, mixed and domiciliary company regime), the introduction of a patent box (both mandatory), an R&D super deduction, a notional interest deduction on surplus equity and exemptions for capital tax purposes (all at the discretion of the cantons). Further, the approved tax legislation will adjust the dividend taxation for individuals, the capital contribution principle, the lump-sum tax credit system as well as provide for an immigration step-up. At the same time, most cantons plan to significantly reduce their corporate income tax rates so that in many cantons tax rates between 12-14% (incl. direct federal tax) will be available.
Envisaged tax rates after reform
With this tax reform, Switzerland implements an internationally accepted tax system and safeguards the appeal and competitiveness of Switzerland as a business location. The reform brings an unprecedented change to the Swiss corporate tax landscape and nearly all companies are affected by the most significant overhaul of the Swiss tax system in decades. The implementation period is short and the impact of the reform on taxpayers needs to be analyzed now to seize opportunities and avoid competitive disadvantage.
Swiss corporate tax rates before and after reform
Articles and Publications Tax Reform (TRAF/TP17/CTR III)
«Approval of tax in Aargau»
«Implementation of the Swiss tax reform in Ticino»
«Switzerland removed from “grey list” by the Council of the European Union»
«Swiss tax reform – Tax accounting implications of cantonal tax law changes»
«Swiss Federal Council approved TRAF ordinances»
«Swiss tax reform – impact on cantons in the Romandie»
«Swiss tax reform: Status of Eastern Swiss cantons»
Webcast «Tax Reform»