Tax and Legal blog
Stay up to date with the latest tax and legal issues and developments that may affect you and your business.
The end of the transition period for companies limited by shares – is your company compliant?
On 1 January 2023 the reform of Switzerland’s legislation on companies limited by shares came into force, responding to the current economic environment and needs. Companies incorporated after this date have been required to comply with the new provisions from the outset. Those already in existence on the date were granted a two-year transition period to adapt their articles of association. With that transition period set to expire on 31 December 2024, the aim of this blog post is to provide an overview of the most relevant changes.
Switzerland and the US sign updated FATCA agreement – Impacts for US taxpayers in Switzerland
In a significant move towards financial transparency and cooperation, the United States and Switzerland have recently agreed on a new Foreign Account Tax Compliance Act (FATCA) agreement. This agreement, signed on 27 June 2024, marks a shift from the previous Model 2 to Model 1, which allows for an automatic mutual exchange of financial account data between the two nations. The change is expected to come into effect in 2027.
Individual taxpayers and financial institutions of both countries need to be aware of these changes and their implications. Both jurisdictions will have greater visibility on the accounts of financial institutions and private individuals, highlighting the importance of remaining compliant on all tax filing and asset reporting obligations.
Join us at Deloitte Incentive Plans Roundtable - 8 October 2024
Join us at our exclusive Roundtable event focused on exploring the transformational potential of Management Incentive Plans. We will have an engaging discussion with a multi-disciplinary group of Deloitte experts and industry peers who will share insights and strategies to help optimize your company’s management incentive plan. This event will take place on Tuesday 8 October 2024 in our Deloitte office in Geneva.
Join our Global Mobility Workshop: Elevating and Optimising your Mobility Programme
Sign up for our upcoming workshop "Elevating and Optimising your Mobility Programme” in:
- Zurich - Wednesday 25 September
- Geneva – Tuesday 1 October
Switzerland to introduce IIR in 2025, but not UTPR
The Federal Council decided on 4 September 2024 that Switzerland will introduce the Income Inclusion Rule ("IIR") on 1 January 2025. The introduction of the Undertaxed Profit Rule ("UTPR") has been postponed until further notice.
Join us at Deloitte Day HR Next 2024 - only few seats left
We are excited to invite you to the second edition of Deloitte Day - HR Next, our flagship event for senior HR executives to explore the future of HR and connect with peers across all industries.
Federal Supreme Court Further Clarifies Application of Safe Harbor Interest Rates
In a recent decision (9C_690/2022, in German), a five-judge panel of the Swiss Federal Supreme Court ("Bundesgericht") dealt with the question of the types of taxes to which the annual circular on safe harbour interest rates annually issued by the Swiss Federal Tax Administration ("SFTA") applies, and whether and to what extent the circular is binding on tax administrations. The court's decision provides clarity.
Federal Supreme Court Denies Tax Deductibility of Provisions for Unused Holidays
In a recent court decision (9C_192/2024, in French), the Federal Supreme Court dealt with the question of the tax deductibility of provisions for unused holidays. It remains to be seen whether this rather short and controversial decision will lead to a change in the practice of certain cantons.
Upcoming Revision of the Swiss VAT Law – Draft publication of the guidelines regarding the new e-commerce rules has been published by the SFTA on 9 July 2024
The Swiss Federal Tax Administration has released on 9 July 2024, the first draft of the guidelines for the new e-commerce Swiss VAT rules, which are set to take effect as of January 1st, 2025. More details on this can be found in our previous blog post (link).
The guidelines – through a completely new sector VAT info n° 27 - confirm and provide detailed information on the SFTA's position regarding different aspects of the new provisions. This includes description of various scenarios when a platform should be considered a deemed supplier, the conditions under which the rules are applied, and the reporting and formal obligations that platforms may have. A significant change outlined in the guidelines is that platforms, whether facilitating the supply of goods or services, shall have a recurring yearly obligation to disclose information to the SFTA if certain thresholds are met regardless of whether the supplies are in scope of the current platform rules. This introduces a new reporting obligation for platforms in Switzerland, which shall, according to the draft VAT info, be submitted electronically.
This blog aims to provide a brief overview of the main points that were published in the draft guidelines. Note, however, that they are still under consultation until 23 August 2024 and are pending confirmation from the Federal Council. Modifications of the guidelines are, therefore, still possible.
Upcoming revision of the Swiss VAT Law – introduction to the changes coming into effect in the health sector
We continue our series of blogs (n°1, n°2, n°3, n°4, n°5) on the upcoming partial revision of the Swiss VAT Law (VATL), which will come into force on the 1st of January 2025. In this blog, changes related to the health sector are presented.
From 1 January 2025, there will be changes to the governing legislation, along with new additions to VAT exempt without credit supplies and VAT rates within the Swiss VAT law, that impact the health sector.