Financial Services Tax in Tax and Legal blog

Swiss taxation of cryptocurrencies – how are investors taxed?

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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.

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Posted on 16/01/2024 | 0 Comments

Swiss and European Fund Investor Taxation Event on the 15th of November 2023

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We would like to invite you to our upcoming in-person tax event taking place on Wednesday, 15th of November 2023 at 4.30 pm CET at our office in Zurich.

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Posted on 30/10/2023 | 0 Comments

The winds of change are blowing: from voluntary to mandatory tax disclosures and their significance within ESG reporting

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The concept of tax transparency is far from new, having been a subject of international discussions for several years. The importance of a state's ability to respond promptly and to allocate tax revenue in addressing various challenges, including financial and health crises has further propelled the topic and heightened the interest of regulators, tax authorities, consumers, investors, and society leading to a higher demand in (tax) transparency.

In the wake of this increased interest, the importance of tax disclosures and their link to sustainability and ESG reporting has come to the forefront.

Numerous organizations and governmental entities, including the United Nations (UN) and the European Union, recognize the crucial role of taxation in the transition to a greener and more sustainable economy. The UN Development Program (UNDP) acknowledges tax as a “powerful tool for revenue collection and a policy instrument to encourage sustainable growth strategies and influence behaviour towards desired outcomes related to climate, nature, well-being, and governance”.

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Posted on 26/10/2023 | 0 Comments

Global Minimum Tax: Swiss voters pave the way for implementation in 2024

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In the popular vote on 18 June 2023, Swiss voters approved the most extensive change to the Swiss corporate tax system in over a century with a wide majority. With the amendment of the Swiss constitution the Swiss voters have paved the way for the Swiss legislator to introduce the global minimum tax (also referred to as “Pillar II”) in Switzerland.

Pillar II introduces an additional layer of taxation (tax law) to Swiss constituent entities of multinational enterprises in scope of the rules and introduces a corporate group taxation system in Switzerland with a mandatory tax of 15% that is determined under a new tax basis (“GloBE”).

The magnitude of change is significant and will redefine the Swiss corporate tax environment in the years to come.

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Posted on 19/06/2023 | 0 Comments

Join our Financial Services Tax webinar relating to high interest rates, withholding tax reclaims, Pillar 2 and VAT updates on 31 May 2023 at 8.30 am CET

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We would like to invite you to our upcoming webinar on high interest rates, withholding tax reclaims, Pillar 2 and VAT updates on Wednesday 31 May 2023 at 08.30am.

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Posted on 9/05/2023 | 0 Comments

Switzerland prepares to vote on global minimum tax

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As countries across the world continue with their efforts to implement the OECD’s global minimum tax (Pillar Two, or GloBE Rules) into domestic law, we see Switzerland is continuing to lay the groundwork for the nation to adopt the rules.

The Swiss implementation journey began in June 2022 with the release of their roadmap to adopt the GloBE Rules. The roadmap intends to apply the income inclusion rule (IIR) and qualified domestic minimum top-up tax (Q/DMTT) as of 1 January 2024.

A referendum is scheduled on 18 June 2023, providing the federal government with the authority to continue with the implementation. As Switzerland continues to move forward, it is crucial for in-scope groups located in Switzerland to understand the financial reporting, disclosure and compliance requirements that are on the horizon. This leaves companies with the short time frame to assess the implications of the rules on the organizations.

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Posted on 3/05/2023 | 0 Comments

Is the banking sector ready for tax technology?

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The use of tax technology has been increasing over the last decade, as organizations seek to gain efficiencies and deliver more value from their tax data. However, this has developed more slowly in the banking sector than other industries. Specific challenges faced by banks can explain slower tax technology adoption, such as complex system infrastructure, special tax treatment applicable to the banking industry, dispersed tax processes responsibilities and higher data security restrictions. Given the current external and internal pressure on tax functions to increase efficiency, there is no better time to develop a tax technology agenda supported by strong business cases. Adopting new software solutions to improve tax processes is not necessarily a synonym of large project costs and disruption. From taking a step-by-step approach to bigger transformation plans there is a breadth of strategies to enable tax functions within the banking sector to initiate a tax technology journey.

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Posted on 25/04/2023 | 0 Comments

Same but different: a comparison of the OECD CARF and the EU DAC8 proposal

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The emergence and rise of alternative methods of payment and investments such as crypto-assets and e-money has heightened global regulators’ interest. This has prompted the publication of various proposals and frameworks to ensure that the recent gains on tax transparency do not get lost and due taxes are paid.

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Posted on 24/02/2023 | 0 Comments

Deloitte Finance Day 2023 - The colours of finance - design your future capability - 1 June 2023 in Zurich

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On Thursday 1 June 2023 in Zurich, Deloitte Finance Day is returning for a second edition. We invite you to experience a unique event to grow your network, share ideas on the future of finance, and hear from industry experts on their journey.

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Posted on 10/02/2023 | 0 Comments

Join our OECD Pillar II webinar on 15 February 2023, 4.00pm

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The implementation of the Global Minimum Tax (“OECD Pillar II”) experienced a significant push towards reality in late December 2022, which included:

  • The European Union adopting the directive requiring members to transpose it into domestic legislation
  • Switzerland completing the parliamentary process on its change of constitution
  • The OECD`s publishing a number of papers to guide the GloBE implementation (in particular: safe harbours, information return and tax certainty)

To navigate these developments we are organising a keynote webinar on Wednesday 15, February 2023 from 4.00 to 5.30pm to discuss these and other topics.

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Posted on 25/01/2023 | 0 Comments