Corporate Tax in Tax and Legal blog
Court Rejects Zurich Practice to Levy Real Estate Capital Gain Tax on Shareholders in Germany
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.
Canton of Zug Plans to Strengthen its Attractiveness in a Post-Pillar II World
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.
Federal Supreme Court to lower level of evidence in (intercantonal) tax law
In a new leading decision by the Federal Supreme Court (9C_591/2023, in German), the five judges have spoken out in favour of lowering the level of evidence in (intercantonal) tax law. The decision, which is intended for official publication, means that in tax law the requirements for providing evidence are lowered for the tax administration (and conversely raised for taxpayers). What are the consequences for taxpayers in Switzerland?
Streamlined tax reporting: How Pillar II might provide you with an opportunity
The OECD Global Minimum Tax regime (“GloBE”) is a headache for most organisations. Also known as Pillar II, the ruleset is complex and still moving, the data requirements to perform the calculations are far-reaching, and the timeline is ambitious. For impacted groups the implementation of a solution to this reporting challenge requires new resources with scarce skillsets.
Swiss taxation of cryptocurrencies – Do withholding tax and stamp duties apply?
Widespread adoption of cryptocurrencies and the increasing economic importance of digital assets increases the need to understand their respective tax implications. In Switzerland taxation of cryptocurrencies is usually based on existing tax laws. The Federal Tax Administration (FTA) has detailed its practice in a recently updated working paper.
Expanding on our previous blog post, this article provides a more in-depth analysis of withholding tax and stamp duty regulations regarding digital assets in Switzerland.
How US GAAP could influence tax reconciliation under IFRS
Although it is a mandatory part of the notes to the financial statements, International Financial Reporting Standards (IFRS) do not specify the level of detail required in a tax reconciliation. In December 2023, the Financial Accounting Standards Board (FASB) issued new income tax disclosure requirements for US GAAP, in addition to modifying and eliminating certain existing requirements. Under the new guidance entities will be required to provide greater disaggregation of information in the rate reconciliation. Could these new US GAAP rules also affect income tax disclosures under IFRS?
Swiss taxation of cryptocurrencies – how are investors taxed?
Widespread adoption of cryptocurrencies and the increasing economic importance of digital assets increases the need to understand their respective tax implications. In Switzerland taxation of cryptocurrencies is usually based on existing tax laws. The Federal Tax Administration (FTA) has detailed its practice in a recently updated working paper.
This series of blogs will focus on explaining the income and wealth tax implications for owning and trading digital assets, the tax consequences for VAT, stamp duties and withholding tax, as well as taxation at issuer level.
It’s official: Switzerland to implement Pillar 2 in a gradual approach
The Federal Council decided at its meeting today that Switzerland will introduce the global minimum tax (“Pillar 2”) in a gradual approach. Specifically, from 1 January 2024, Switzerland will levy a national top-up tax (QDMTT) on profits of Swiss corporations and permanent establishments of international groups. The international top-up tax (IIR, UTPR) on profits of foreign subsidiaries and permanent establishments of Swiss headquartered groups will be introduced at a later stage (potentially 1 January 2025). What does this decision mean in detail?
Why obtaining Transfer Pricing certainty also becomes important for Pillar II?
The purpose of the blog is to discuss the importance of obtaining Transfer Pricing certainty from the perspective of the Pillar II rules (GloBE / QDMTT rules). Failure to obtain certainty on Transfer Pricing positions could expose the MNE Group to double taxation not only in the current corporate income tax framework but potentially also double taxation / over taxation because of the interaction of the current corporate income tax / transfer pricing framework with the new Pillar II system.
Deloitte Switzerland's Tax & Legal practice strengthens its capabilities with Thomas Hug joining as Partner
Deloitte Switzerland is delighted to announce that Thomas Hug joined its Tax & Legal team as Partner on 1 November. This intake marks the continued strategic expansion of Deloitte`s tax-related services in the Swiss marketplace.