Switzerland Rejects Corporate Tax Reform III in Public Vote

PicturePDFWith a majority of 59.1%, Swiss voters rejected the Corporate Tax Reform III (CTR III) in a public vote held on February 12, 2017. CTR III, which was the result of a long and complex political process, would have abolished current existing tax regimes, such as the rules for holding or mixed companies. At the same time, the reform would have introduced new internationally accepted measures such as the patent box, research and development (R&D) incentives, notional interest deduction, and basis step-up.

The negative vote raises a number of questions on the future tax landscape for companies in Switzerland and abroad, especially concerning the immediate impact on Swiss taxpayers. At a minimum, the ‘no’ vote means that the current tax legislation and tax rules remain in place and that Swiss taxpayers will not face any immediate, unanticipated changes.

Nevertheless, considering the worldwide debate and recent developments on taxation, pressure will remain on Switzerland to abolish its current tax regimes, so the need for reform remains undisputed by all parties and the Federal Council will have to work out a new reform proposal as quickly as possible. However, it is clear that the reform will not be ready to take effect in 2019 as originally planned. Instead, there will likely be a delay of two to three years.

Continue to read in detail in our current newsletter.

I have summarized the most important information for you in a short video.

VideoPictureArmin

If you have questions, please contact your usual PwC contact person or one of PwC Switzerland´s experts in CTR III named below.

Contacts

Andreas Staubli
Partner
Leader Tax & Legal Services Schweiz
Tel. +41 58 792 44 72
andreas.staubli@ch.pwc.com
Armin Marti
Partner
Leader Corporate Tax Schweiz
Tel. +41 58 792 43 43
armin.marti@ch.pwc.com
Benjamin Koch
Partner
Leader Transfer Pricing and Value Chain Transformation
+41 58 792 43 34
benjamin.koch@ch.pwc.com
Daniel Gremaud
Partner
Tax & Legal Romandie
+41 58 792 81 23
daniel.gremaud@ch.pwc.com
Claude-Alain Barke
Partner
Tax & Legal Romandie
+41 58 792 83 17
claude-alain.barke@ch.pwc.com
Remo Küttel
Partner
Tax & Legal
+41 58 792 68 69
remo.kuettel@ch.pwc.com
Laurenz Schneider
Director
Corporate Tax
+41 58 792 59 38
laurenz.schneider@ch.pwc.com

Published by

Armin Marti

Armin Marti
PwC
Birchstrasse 160
Postfach, 8050 Zurich
+41 58 792 43 43

Armin leads the PwC Swiss Corporate Tax practice. He holds a Master in Business Administration from the University of St. Gallen, Switzerland (lic. oec. HSG) and has qualified as a Swiss Certified Tax Expert.

As a member of the global PwC International Tax Services (ITS) Network and former country leader for ITS, Armin has gained extensive experience in leading complex cross-border tax projects.

Armin Marti has over 29 years experience in providing international tax consultancy for large quoted and privately held Swiss and foreign multinationals. He advises his clients on tax effective set-up of legal entity structures including domestic and cross-border tax restructurings, tax effective group financing, tax efficient profit repatriation, acquisitions and divestitures plus tax effective business models.