Global Employer Services in Tax and Legal blog
Incoming Trump Presidency and the Potential Tax Impact for US Persons in Switzerland
As the US prepares for President-elect Donald Trump to take office on January 20, 2025, the United States is preparing for significant shifts in tax policy. With Republicans controlling both chambers of the US Congress, and many individual income tax provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) sunsetting at the end of 2025, the stage is set for potential tax changes that will impact businesses, individuals, and the broader economy. For Americans living abroad, these changes could have significant implications and allow for new planning opportunities.
Swiss Immigration Update: A review of 2024 and preview of upcoming changes in 2025
As we enter 2025, we would like to reflect on the past 12 months, summarise the developments, look ahead to the new year, and elaborate on expected changes from an immigration perspective.
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 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
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.
Tax reform in Canton Ticino – What will change?
On 9th of June 2024 the people of Ticino approved the new tax reform. The main change aims to alleviate tax burdens on high incomes, enhancing Ticino’s attractiveness from a tax perspective. The reform encompasses a reduction in income tax rates, along with adjustments to inheritance and gift taxes, as well as a decrease in the tax rates on capital withdrawals from pensions.
Swiss Equity Incentive Reporting – Struggling with Equity Annexes?
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.
Join our Swiss Advisory Roundtable: Latest updates on individual tax, social security and immigration
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
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.
How does the EU's revised Proposal for a Corporate Sustainability Due Diligence Directive impact Swiss & international business?
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.