Join our Deloitte's Pillar 2 Technology Showcase - Explore leading Pillar 2 solutions

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Sign up for our upcoming event where you will have the opportunity to access Pillar 2 solutions demos, meet with the Pillar 2 solution vendors teams and network with your peers.

The event will take place on the following dates and locations:

  • Geneva - Wednesday, 19 June 2024
  • Zurich - Thursday, 4 July 2024

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Posted on 5/06/2024 | 0 Comments

Swiss Equity Incentive Reporting – Struggling with Equity Annexes?

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Swiss tax law requires employers who incentivise employees with equity- based compensation, settled either in cash or in equity, to provide the tax administration with a summary of the taxable amounts, exchange rates used and other information. Even in the absence of any transaction, a yearly recap must be provided to the authorities. When equity awards are taxed across multiple jurisdictions the summary also needs to include the calculation method used to allocate taxing rights and determine the exact amount of Swiss taxable income.

This summary document is commonly called an “equity annex” and needs to be delivered at the same time as the Swiss salary certificate. Many employers often struggle to gather the information, prepare the annex and deliver it on time to employees.

However, there are automated reporting solutions that can make this process easier.

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Posted on 4/06/2024 | 0 Comments

Court Rejects Zurich Practice to Levy Real Estate Capital Gain Tax on Shareholders in Germany

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In a recent court case (GR.2023.22, in German) the Zurich Tax Appeals Court ("Steuerrekursgericht Zürich") confirmed that the sale of the majority of shares in a Swiss real estate company by a German domiciled individual constitutes a sale of financial assets, even though the sale qualifies as an indirect sale of real estate (change of economic ownership) under Zurich tax law. In view of the double taxation treaty between Switzerland and Germany and according to the prevailing academic consensus, the right to tax the capital gain was granted to Germany. As a result, the relevant city in the canton of Zurich does not have the right to levy the real estate capital gain tax on the indirectly sold property. The court decision is not yet legally binding.

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Posted on 30/05/2024 | 0 Comments

Join our Swiss Advisory Roundtable: Latest updates on individual tax, social security and immigration

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Sign up for our next Swiss Advisory roundtable "Latest updates on individual tax, social security and immigration – Spotlight: From hiring to ending: tax, social security and employment law aspects for executives” in:

  • Zurich - Thursday 6 June
  • Geneva – Tuesday 11 June
  • Basel – Tuesday 18 June

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Posted on 22/05/2024 | 0 Comments

Canton of Zug Plans to Strengthen its Attractiveness in a Post-Pillar II World

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The canton of Zug aims to strengthen the attractiveness of Switzerland, and in particular the canton itself, as a business location in a post-Pillar II world using a bundle of instruments with a focus on subsidies related to sustainability and innovation (media release in German). No Qualified Refundable Tax Credits (“QRTC”) are planned at this stage. The consultation draft of the "Location Development Act" is subject to a popular vote in 2025 and would come into force on January 1, 2026.

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Posted on 17/05/2024 | 0 Comments

New Climate Protection Ordinance creates incentives to tackle net-zero targets

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On 18 June 2023 the Swiss electorate approved the Climate Protection and Innovation Act (CPA). The act was accepted as counterproposal to the popular Glacier Initiative and is set to take effect on 1 January 2025. The CPA mandates that Switzerland should achieve net-zero emissions by 2050 in the building, transport, and industrial sectors. To achieve this objective, the CPA provides that the Swiss State will offer funding to companies that develop and utilise innovative technologies. The specific details of these funding programmes and incentives are outlined in the Climate Protection Ordinance (CPO), whose consultations have just ended, on 1 May 2024.

This blog focuses on the funding available to companies pursuing innovative technologies and briefly discusses the eligibility criteria, explores the projects that meet the qualifications for funding, and outlines the process to become eligible for funding.

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Posted on 17/05/2024 | 0 Comments

Training your chatbot correctly – What are the legal implications of a chatbot that provides wrong information?

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The emergence of new technologies, including the widespread use of artificial intelligence in everyday life, has significantly affected the legal landscape. The use of chatbots in online contracting, coupled with the now well-known phenomenon of artificial intelligence hallucinations – incorrect or misleading results derived from AI – has resulted in novel challenges, notably in the realm of contract law. As a result, the courts and tribunals must adapt to this new reality and grapple with issues such as determining liability where a customer contracts on the basis of inaccurate information provided by a chatbot on a company’s website.

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Posted on 16/05/2024 | 0 Comments

Upcoming revision of the Swiss VAT Law – introduction to the changes for government, public services and non-governmental organisations

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We continue our series of blogs (n°1, n°2, n°3, n°4) on the upcoming partial revision of the Swiss VAT Law (rVATL), which will come into force on 1 January 2025. In this blog, changes related to government, public services and non-governmental organisations are discussed.

From January 1, 2025, a new definition of the concept of a subsidy and amendments relating to VAT exempt without credit supplies will be included in Swiss VAT law.

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Posted on 15/05/2024 | 0 Comments

Exploring the integration of tax in EU sustainability regulations

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This blog explores in summary how sustainable tax practices and tax transparency are part of key EU sustainability (reporting) regulations and what this means for companies. It focuses on how tax is integrated in the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), the EU Taxonomy Regulation, and the Sustainable Finance Disclosure Regulation (SFDR).

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Posted on 8/05/2024 | 0 Comments

Deloitte Immigration Academy 2024: Join our half-day workshop!

Sign up for our Immigration Academy half-day workshops. This year we will be joined by the State Secretary for Migration (SEM) and the Zurich Labour Market Authorities (AWA). Together, we will provide updates and discuss the latest developments in the field of immigration.

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Posted on 2/05/2024 | 0 Comments

How does the EU's revised Proposal for a Corporate Sustainability Due Diligence Directive impact Swiss & international business?

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After prolonged negotiations, the European Parliament officially adopted the Corporate Sustainability Due Diligence Directive (CSDDD) in a significantly scaled-down version in its plenary vote on April 24, 2024.

Essentially, the EU Directive applies to EU-based and international companies that meet certain criteria on size, such as the number of employees and/or turnover. Additionally, it extends to companies that are direct or indirect business partners of the entities falling within the scope of the Directive. The primary focus is on the chain of activities of companies by imposing due diligence obligations on the entities within scope and their business partners to address potential adverse human rights and environmental impacts.

Even if a Swiss or international company is not directly subject to the requirements of the Directive, it is advisable to review the business relationships and proactively implement human rights and environmental due diligence processes considering international standards, and to enhance transparency along the value chain. This will enable companies to meet the demands of their European customers, maintain competitiveness, and enhance their level of preparedness for future legislations in this field.  

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Posted on 25/04/2024 | 0 Comments