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The Swiss Federal Council has approved the bilateral post-Brexit agreement. The agreement has yet to be ratified by the U.K.
What does the news mean?
The new Swiss-U.K. agreement will administer the status of U.K. nationals in Switzerland and Swiss nationals in the U.K. following Brexit.
In July 2017, the Chief Executive of the UK Financial Conduct Authority (FCA) announced that firms should discontinue the use of the London Interbank Offered Rate (LIBOR) in favour of overnight risk-free rates (RFRs). Although registered and administered in the UK, LIBOR is a benchmark that underpins contracts affecting banks, asset managers, insurers and corporates globally. The transition must be completed by the end of 2021, as the continuation of LIBOR will not be guaranteed to market participants after that date.
The Swiss Federal Council has approved a temporary quota scheme which will be allow UK nationals to apply for work authorization in Switzerland after Brexit.
On 23 January 2019, the Swiss Federal Tax Administration (FTA) published revised CRS guidance notes. The update mainly incorporates previously released guidance and disappointingly only contains limited material amendments. In addition, several examples (e.g. on the identification of controlling persons) and explanations (e.g. on the wider approach) were removed, without changing the underlying rules and thus having a limited impact. Finally, a number of linguistic errors and references were corrected, one of which also resulted in a re-release on 28 January 2019. Read on for a summary of the most important changes for Swiss financial institutions (FIs).
New withholding tax practice further increases the attractiveness of Switzerland as an international financing and treasury center
The funds flow back to Switzerland from a bond of a foreign issuer guaranteed by a Swiss parent (downstream guarantee) will no longer attract Swiss withholding tax on the interest, as long as such funds flow does not exceed, either, the aggregate equity of foreign affiliates, or, the aggregate loans to foreign affiliates.
Investing in the United States? Join us and learn more at our OFII breakfast event on 15 March, Zurich
Our breakfast event highlights:
- Investment landscape in the US: a political, legislative and regulatory perspective
- US tax reform a year later: a US inbound perspective
- The growing importance and complexity of state taxes for US inbound investors
- Navigating the changing US inbound environment: a headquarters perspective
Register and join our first-ever Deloitte Immigration Academy in Geneva on Thursday, 21 March.
The Academy is a new Deloitte initiative bringing global mobility, immigration and HR professionals in Switzerland together to learn about and discuss the most current and important immigration topics. It is a half-day workshop that combines technical training, a group discussion and a short presentation by topic experts. The content is based on real-life case studies with a focus on sharing practical experience on how best to address today’s immigration challenges.
Since BEPS, multinational companies are operating in an environment of unprecedented complexity. The rising volume and variety of intercompany transactions and transfer pricing regulations, coupled with increased tax authority collaboration across borders present both risks and opportunities. Our transfer pricing updates will provide you with the latest transfer pricing issues and developments worldwide that may affect your business.
As per Morgan Stanley CJEU judgment (C-165/17, 24 January 2019), EU branches incurring VAT on expenses used wholly or partly for EU head office supplies, must consider the activity of the head office to determine their VAT recovery calculation.
On the 19 December 2018, the Swiss Federal Council approved the agreement between Switzerland and the UK about the rights of its citizens after Brexit. The strategy named “Mind the Gap” (named after the iconic warning signs in the London Underground) intends to secure acquired rights and obligations after the UK has left the European Union.
The Swiss Tax Reform and AHV Financing bill (TRAF, formerly known as Swiss Tax Reform 17 and Swiss Corporate Tax Reform III) will officially be subject to a referendum, as mainly a left wing alliance of junior green and junior socialist parties has secured more than 50’000 signatures against the proposed law. 50’000 signatures are necessary for a respective public vote on the law. The public vote is now scheduled for 19 May 2019.