A primer on the regulation of the trading in cryptocurrencies and the asset management related to cryptocurrencies in Switzerland

Cryptocurrencies, which are based on distributed ledger technology, have gained importance in financial services in the recent past. This primer seeks to give an overview of the key obligations under Swiss regulatory laws related to:

  • Trading in cryptocurrencies
  •  Initial coin offerings (ICOs)
  • Entities trading in cryptocurrencies
  • Asset management related to cryptocurrencies
  • Anti-money laundering obligations

Trading in cryptocurrencies is increasingly subject to regulation on multiple levels, namely:

  • Trading
  •  ICOs
  • Entities trading in cryptocurrencies
  • Asset management related to cryptocurrencies

Payment tokens, exchange of cryptocurrencies into fiat money, custody wallets, banks, securities dealers and asset managers are generally subject to anti-money laundering requirements, such as registration, supervision and identification of counterparty requirements. Anti-money laundering obligations are the basic regulatory requirements that apply to most entities trading in cryptocurrency markets. Depending on their additional activities, they might require a licence as a bank, securities dealer (Swiss version of an investment firm), bilateral organised trading facility (OTF) or asset manager, or a combination of these licences. Switzerland is also planning to introduce a new licence category in the near future, called fintech-bank. Licences are required in the cases listed below.

  • Accepting client deposits, in particular when issuing OTC derivatives which are not securities, generally requires a banking licence. The banking licence is the highest regulated category of financial market participation. Cryptocurrencies and their associated private keys may be deposits under the Swiss Banking Act.
  • Trading in cryptocurrencies which are securities, either on behalf of clients or on one’s own account (if certain turnover thresholds are being exceeded), generally requires a securities dealer licence. The licensing requirements also apply to the entity’s public issuing of derivatives. Bilateral systematic internalisation of cryptocurrencies and related derivatives or financial instruments is subject to additional regulatory requirements under the Swiss Financial Market Infrastructure Act (FMIA).
  • Asset management activities related to Swiss and foreign collective investment schemes regarding cryptocurrencies and related financial instruments generally require a licence. The distribution of collective investment schemes and the representation of foreign collective investment schemes also require a licence. Individual portfolio management and advisory activities are, under the current regulatory regime, not subject to a licensing requirement (except for AML registration). However, this is likely to change under the new regulatory regime planned to enter into force soon.

Trading in cryptocurrencies that are derivatives may be subject to multiple obligations depending upon the status of the counterparties involved, such as reporting and risk mitigation (trade confirmation, portfolio reconciliation, portfolio compression, dispute resolution and valuation, as well as initial and variation margins).

Read Full Report

Contact Us

Martin Liebi
Director, PwC Legal Switzerland
Tel: +41 58 792 28 86
martin.liebi@ch.pwc.com

Swiss Company Leadership and the Gender Divide (2008-2018) – Report

Earlier this month, PwC joined forces with the data insight company Business-Monitor to publish a new gender parity analysis of all companies registered in Switzerland about the development of gender inequality within the workforce over the past decade. “This report aims to bring a new perspective on the representation of women in decision-making positions in the Swiss economy and how the landscape has changed over the past ten years.(Swiss Company Leadership and the Gender Divide, 2008-2018)

Key findings

  1. Women are “stuck” at lower-level decision making roles and change is not about to occur. The research confirms that the “glass ceiling” metaphor is not a myth. In 2018, less than one in four decision-makers in Swiss businesses are women. Over the past ten years, this rate has consistently diminished, as in 2008, the proportion of females in decision-making roles was one in three.
  2. There is a surprising difference between female representation trends of Limited companies (LTDs) and Limited Liability companies (LLCs). Although gender imbalance is lower in LLCs, both types of legal entities have an unequal percentage of women in decision-making roles (16.8% for LTDs and 27.1% for LLCs, in 2018) and an uneven gender spread across the responsibility hierarchy. This trend has slightly improved over the last decade in LTDs but the data shows that this is not the case for LLCs. An overall 2.2% drop in females holding decision-making roles can be observed over the past 10 years. Although LTDs are the best examples of the “glass ceiling” phenomenon, it is harder to break in LCCs.
  3. Gender balance is poorer in newer companies. With the efforts undertaken by the Swiss government and other worldwide organizations to raise awareness for equal pay and representation, one would assume that newly established companies are the front runners in terms of balanced workforces. Surprisingly, research shows that this is not the case. Companies founded after 2008 have a higher gender imbalanced rate than pre-existing ones.

What’s next?

The striking statistical data raises important questions as to why these gender imbalances exist, what strategies companies can implement to tackle them and why it would be beneficial for them do so. Indeed, the report identifies a compelling business case for gender equality, which can only be achieved through: a clear vision, leadership engagement and an action plan engaging the entire workforce and key partners to be more Diverse & Inclusive. These actions can ignite the change so your organization can be part of the journey to gender parity across the globe.

To understand where your organization is today regarding Diversity & Inclusion, we encourage you to take our short survey. After completion, you will receive an assessment indicating the strengths and opportunity areas of your program. You will also receive indications on how you compare to the benchmark of other companies in your region and industry.

At PwC we are committed to becoming more Diverse and Inclusive through a number of ongoing actions, including the HeforShe program. Our active HeforShe ambassadors are committed to ensuring equal pay for our workforce by becoming EQUAL-SALARY Certified.

We look forward to engaging in conversations with you on this topic.

PwC Switzerland
Sue Johnson
Tel. +41 58 792 90 98
sue.johnson@ch.pwc.com

PwC Switzerland
Christina Yap
Tel +41 58 792 90 29
christina.yap@ch.pwc.com

Geneva International VAT Breakfast: E-invoicing & hot topics in indirect taxes

E-invoicing & hot topics in indirect taxes

So far, 2018 has been a very dense year for indirect tax professionals with various hot topics arising. In Switzerland, for instance, the recent clear rejection of the initiative “No Billag” will lead to changes in the scope of the radio-television fees that will be applicable to businesses as from 1 January 2019.

At the same time, compliance with e-invoicing and e-archiving obligations are being introduced in various jurisdictions such as Italy. During our upcoming event, we will go through the new rules and the compliance obligations across EU and Switzerland in terms of e-invoicing and e-archiving.

We will also follow up on the definition of fixed establishment providing insight on the recent developments particularly in Poland. The International VAT Breakfast will also feature recent hot topics that can impact businesses operating worldwide, such as the EU commission proposal for flexible VAT rates, the measures to strengthen VAT fraud prevention adopted by EU and non-EU countries and the introduction of the reverse charge mechanism for imports of goods in Portugal as from 1 March 2018.

Finally, as always, we will share with you the most significant developments with respect to the EU and Swiss case law.

To register for this event: Click here

Contact us

Patricia More
Tel.+41 58 792 95 07
patricia.more@ch.pwc.com

Disclose 27, Focus piece 4: PwC’s Experience Center

Disclose – PwC’s online magazine

«It takes people, digital technologies and trust to achieve top performance.»

Reading our latest issue of Disclose (disclose.pwc.ch/27/) you’re sure to get an adrenaline rush as we investigate a topic with particularly close connections to sport: high-performing organisations.

Focus piece 4 gives you an insight into PwC’s Experience Center:

Digitisation is sweeping companies of all sizes in all industries and areas of value creation. That’s nothing new. What is new is the high-performing approach adopted by PwC’s Experience Center as it guides its clients through digital transformation. PwC’s 28 similar experience centres worldwide produce concrete results and provide first-hand experiences, from strategy to implementation – all in next to no time. In this interview, Holger Greif, Leader Digital Transformation, explains how it works and why PwC’s Experience Center in Zurich has its expert hands full.

Read the full report here.

Contact

Holger Greif
Partner, Leiter Digital Transformation, PwC Schweiz
+41 58 792 13 86
holger.greif@ch.pwc.com

Release of dispatch and bill for tax proposal 17

The Federal Council drew up the bill based on responses received during the consultation process on the revised tax proposal (TP17). This bill is supported by the cantons as well as the cities and communes and was forwarded to parliament for discussion on Wednesday, 21 March 2018.

If the reform proposal can be dealt with in Swiss parliament expeditiously and without referendum, it is anticipated that some measures of the bill will already enter into force in 2019 with the remaining provisions in 2020.

The objectives

The overall objectives of TP17 remain unchanged, i.e. abolition of special forms of corporate taxation (Swiss tax regimes) and improve the attractiveness of Switzerland as a business location for domestic and foreign companies, maintain and create jobs, adjust the corporate tax law to the new international standards and enhance international acceptance of it. In addition and to take into account the learnings from the negative vote on corporate tax reform III in February 2017, the bill puts more emphasis on the financial impact of the tax reform on the federal as well as on municipalities’ and cities’ budgets.

In detail, the bill includes the following measures:

Measures to sustain international acceptance and competitiveness

  1. Abolition of criticised Swiss tax regimes
    In line with its international commitments, Switzerland will abolish the holding, domicile and mixed company privileges at cantonal level as well as the practices regarding principal taxation and the Swiss finance branches at federal level.
  2. Introduction of a patent box (cantonal level only)
    The patent box regime shall be mandatory for the cantons. The law outlines that Swiss or foreign patents will qualify for the patent box, but also comparable rights, such as certain protection certificates (thereafter “IP” or “IP rights”). In line with international OECD standards, the modified nexus approach (nexus ratio) will apply by patent, by product or by group of products.
    Where the IP right is embedded in a product, the residual profit method shall apply. The net profit from such products shall be reduced by a (routine) profit component of 6% on attributable costs as well as by a trademark related profit component. The maximum allowable relief amounts to 90%, applied to net residual profits from patented products post nexus ratio. Cantons may further reduce the maximum relief.
    Upon the first application of the patent box to a specific IP, any related R&D expenses that were deducted in Switzerland as tax deductible expenses in the past must be added back to the taxable income. Cantons are free to determine the entry taxation modalities within the first five years after entrance into the patent box.
    An ordinance to be issued by the Federal Council will provide more detailed implementation guidance including details on the calculation of the qualifying patent net income, documentation rules and begin / end of the reduced taxation.
  3. Additional deduction for R&D (cantonal level only)
    The introduction of an additional deduction for R&D expenditures is optional for the cantons. The deduction can amount to a maximum of 50% of the R&D costs incurred by the tax payer or the amounts paid to a domestic third party. R&D is defined by reference to article 2 of the Federal law from December 14, 2012 on promoting research and innovation.
    The cost basis is defined i) by reference to the direct R&D labour costs increased by a 35% up-lift for R&D related indirect costs plus ii) 80% of R&D costs invoiced by domestic third parties.
  4. Maximum relief limitation (cantonal level only)
    The aggregated reductions of the tax basis through the patent box, additional deduction for R&D expenditures and a step-up tax depreciation stemming from an early exit from a current tax regime in accordance with current cantonal practice shall not exceed 70%. Cantons may introduce lower thresholds of the relief limitation.
  5. Increase of cantons’ share of direct federal tax and reduction of cantonal income tax rates
    In order to support cantons in connection with the implementation of the measures of TP17 it is envisaged to increase the cantons’ shares of direct federal tax receipts from currently 17% to 21.2%. Although not earmarked for specific purposes it is expected that the cantons will use the additional funds to implement the measures of TP17 according to their needs but also to finance (significant) reductions of corporate income tax rates. The latter element is not directly included in the newly issued bill, since the determination of the magnitude of the cantonal corporate income tax rate reduction is subject to individual decision and approval process for each of the cantons.
    The lowered overall effective income tax rates (federal and cantonal) is to be expected in the range of approx. 12% to 18%.
  6. Annual capital tax (cantonal level only)
    The cantons may implement a reduction of the portion of taxable equity relating to investments and qualifying patents.
  7. Transitional rules for previous special-regime companies (cantonal level only)
    The transitional rules foresee, that hidden reserves (including goodwill) will be subject to a separate reduced taxation during a 5 year period to the extent they have not been subject to income taxes in Switzerland to date. The relevant applicable tax rate is at the discretion of the cantons. This rule is not subject to the ordinary entry into force provision and may be applied by the cantons already somewhat earlier than the ordinary effective date of the other provisions of the reform.
    Companies will have to report the hidden reserves (including goodwill) with the last tax return prepared and filed under the old (currently applicable) law in order to benefit from the five year transition rule.
  8. Step-up of hidden reserves upon migration to Switzerland
    Companies or business functions migrated to Switzerland from abroad may benefit from a step-up of hidden reserves (including goodwill) up to the fair market values in the tax balance sheet in the first tax return. Such a step-up will not trigger Swiss income tax consequences. The tax deductible amortisation of the stepped-up assets must be in line with applicable Swiss safe harbour rates. Capitalised goodwill will have to be amortised over a period of 10 years.

Further measures

  1. Broadening of the lump-sum tax credit
    According to the bill, it is also the intention to provide a new legal basis to enable ordinarily taxed Swiss branches of foreign companies to claim a lump-sum tax credit for foreign withholding taxes under certain circumstances. Respective details will be part of a new ordinance.
  2. Transposition threshold abolished
    The 5% threshold applicable to shares transferred to a self-owned company will be abolished. Accordingly, the transfer or sale of any shares, regardless of the amount or stake held, could result in taxable income at the level of the individual shareholder.

Measures to balance the reform

  1. Increased taxation on dividends for Swiss individual residents
    Dividends from qualifying investments should be taxed at 70% on the federal level and at least 70% on the cantonal level. Currently, on the federal level, a taxation of 50% for business assets and 60% for private assets applies. At the cantonal level, it cannot be excluded that the minimum taxation threshold will even be higher than 70%.
  2. Family allowance
    The minimum children’s and education allowances shall be increased by CHF 30 per month to a minimum of CHF 230 and CHF 280 per child respectively.
  3. Notional interest deduction
    Despite the recognised importance of this measure for the attractiveness of Switzerland as a business location, the measure of a notional interest deduction – at least as a voluntary measure at cantonal level – is not included in the bill. It is possible that during the parliamentary debate some stakeholders may request a reintroduction of a notional deduction on qualifying equity into the reform package.

The takeaway

The starting point for the tax reform is the alignment of Swiss corporate taxation rules with international standards. TP17 and the cantonal implementation plans shall, however, also ensure that Switzerland remains an attractive business location.

Against the background of the rejected corporate tax reform III, the published bill is a political compromise which is supported by the cantons, as well as by the cities and communes with the objective of avoiding a referendum. Ultimately, according to the Federal Council’s assessment, TP17 means that status companies will have to pay some more taxes although new/transitional measures and reduced ordinary income tax rates may limit the increase – while local SMEs pay less taxes, despite the moderate increase in dividend taxation and the increase in family allowances.

The elimination of the notional interest deduction, the further limitation of the additional deduction for R&D expenditure and a stricter maximum relief limitation rule will put greater emphasis on the reduction of the cantonal corporate income tax rates. Further, it is possible that the final version of the legislation, which needs to pass the Swiss parliament, differs from the currently proposed version and it might be feasible, that it will be (even) more favorable to businesses.

Companies are well advised to prepare in good time for the changes and identify necessary actions.

Download this article as a PDF.

Your contact partners

Dieter Wirth
Tel. +41 58 792 44 88
E-Mail: dieter.wirth@ch.pwc.com

Armin Marti
Tel. +41 58 792 43 43
E-Mail: armin.marti@ch.pwc.com

Remo Küttel
Tel: +41 58 792 68 69
E-Mail: remo.kuettel@ch.pwc.com

Benjamin Koch
Tel: +41 58 792 43 34
E-Mail: benjamin.koch@ch.pwc.com

Daniel Gremaud
Tel: +41 58 792 81 23
E-Mail: daniel.gremaud@ch.pwc.com

Claude-Alain Barke
Tel: +41 58 792 83 17
E-Mail: claude-alain.barke@ch.pwc.com

How healthy were hospital finances in 2016?

The Swiss healthcare sector is increasingly dynamic and competition-driven, with growing economic incentives. Our analysis of financial information from Swiss hospitals reveals that too many acute hospitals are not yet profitable enough.

On average the situation at psychiatric care facilities looks slightly better. Against this backdrop, many hospitals and clinics face major challenges when it comes to funding investments in the long term. Added to this is the fact that new healthcare delivery models, changing roles and digital technology will come to dominate the healthcare landscape as we approach 2030. Hospitals will have to be agile and open to innovation to be able to withstand this pressure and flourish.

Download an excerpt of the study alongside with analyses in interactive format on www.pwc.ch/hospitalstudy. The complete study is available in German and French.

If you have any questions, do not hesitate to reach out to us. We look forward to hearing from you.

Contacts

Patrick Schwendener, CFA
PwC | Director | Deals | Valuation & Modelling | Healthcare
Office: +41 58 792 15 08 | Mobile: +41 79 816 69 10
Email: patrick.schwendener@ch.pwc.com

Philip Sommer
PwC | Director | Consulting
Office: +41 58 792 7528 | Mobile: +41 76 516 1741
Email: philip.sommer@ch.pwc.com

FATCA Certification: Extension of Deadline and Draft Certification Texts Published

On 16 March 2018, the Internal Revenue Service (“IRS”) published the FATCA Responsible Officer certification texts on its website (in draft form). Additionally, the IRS extended the deadline for the FATCA Responsible Officer certification. Please refer to the following link for access to the draft FATCA certification texts as well as the notice regarding the deadline extension.

The IRS also announced that the IRS’s FATCA Certification Portal (“IRS Portal”) will not be available until July 2018 (at the earliest). Based on the newly provided information, we understand that the IRS will grant FATCA Responsible Officers an extension of at least three months (as per the activation date of the IRS Portal) for the FATCA Certification. This means that the FATCA Certification deadline will be extended from 1 July 2018 to 1 October 2018 (assuming the IRS Portal is activated on 1 July 2018).

Furthermore, the IRS published different draft certifications texts for the various Financial Institution categories (e.g., Reporting Model II FFI, Local FFI, etc.). An initial review of the draft certification texts indicates no unexpected surprises in terms of the content or scope of the FATCA Certification.

As we continue to analyze the certification texts, we will actively post any new and relevant information. In the meantime, please feel free to contact us in case of any questions.

Contact

Bruno Hollenstein
Partner, Operational Tax
+41 58 792 43 72
bruno.hollenstein@ch.pwc.com

Melanie Taosuwan
+41 58 792 4249
melanie.taosuwan@ch.pwc.com

PwC’s 2018 Global Economic Crime and Fraud Survey: Should Swiss companies be worried?

PwC’s Global Economic Crime and Fraud Survey 2018 reveals that 49% of global and 39% of Swiss organisations experienced economic crime in the last 24 months.

Could this mean that the problem is diminishing? Or are Swiss organisations simply not aware they have already fallen victim to economic crime?

In this blog post we will be examining the true nature of the threat and exploring whether companies be taking smarter measures to combat economic crime.

Does an apparent decline in fraud reflect the true story?
Despite a number of recent high profile fraud cases globally, PwC’s Global Economic Crime Survey suggests that the problem isn’t proliferating in Switzerland. The percentage of Swiss organisations who have experienced fraud in the last two years has decreased from 41% in 2016 to 39% in 2018. This figure looks even more positive when compared with the global (49%) or western European (45%) results. But is the result really that good?

We believe it isn’t. The survey data reveals some disconcerting facts.

Bribery and corruption are increasingly on the radar. In 2018, 27% of the Swiss respondents reported that they had been asked to pay a bribe, up from 9% in 2016. One in five respondents (20%) believe that their firms lost an opportunity to a competitor who paid a bribe within the last 24 months, up from 11% in 2016. While this shows growing awareness of, and confidence in acknowledging bribery and corruption, it also suggests that companies have to become even more alert to the threat of the problem and its implications in terms of competitiveness.

Secondly, the mean direct loss attributable to each incident of fraud in Switzerland was almost CHF 10 million – more than five times the global figure. While this may be due in part to the size of the Swiss economy and the prominence of banking and financial services sector– a particularly attractive target for fraudsters – it demonstrates that this is not a trivial problem. The size of monetary damage is significant.

Fighting fraud blindfold, or with eyes wide open?
While the lower fraud level reported in Switzerland may be due to an effective legal framework and law enforcement system, it could also reflect a temptation for organisations to overestimate the effectiveness of their systems and controls. Only one in three (33%) Swiss respondents performed a general fraud risk assessment over the two-year survey period which is substantially less than respondents globally (54%). Against this backdrop there’s a considerable risk that economic crime will go unnoticed and unreported, especially if an organisation doesn’t have access to management reporting concerning fraud.

Fraudsters down but not out, and moving quickly with the times
Swiss respondents reported that asset misappropriation (51%) and cybercrime (44%) were the two most common types of fraud experienced by their organisation with the latter also being perceived as a significant threat in the future. In order to be adequately prepared, organisations need to keep track of changes in the overall fraud risk landscape and the fact that Swiss respondents recognise cybercrime as the most significant risk going forward is encouraging.

However, our survey – both globally and in Switzerland – suggests that there’s still a failure to recognise the true nature of the threat, especially with growing business and consumer digitisation, the increasing sophistication of attacks, and heightened data security expectations amongst stakeholders. As the latest digital technologies help fraudsters become more strategic in their goals and more sophisticated in their methods, companies urgently have to make cybersecurity – the mitigation of cybercrime – a boardroom priority.

Unlike other types of fraud, cybercrime is a means to commit other types of fraud rather than being a stand-alone offence. Three in ten Swiss respondents suffered disruption to their business processes after having been the victim of a cyber-attack. More than a quarter of Swiss respondents (28%) were a victim of extortion and more than a fifth (23%) reported that a cyber-attack was used as a conduit to commit asset misappropriation against their organisation.

Efforts have to be more intelligent and better coordinated
While the 2018 survey shows that Swiss firms are taking cybercrime seriously, it also suggests that they need to work harder to be in line with global standards. Best practice organisations have adopted a ‘three lines of defence’ model, dividing responsibilities between functions that own and manage risk, those that oversee or specialise in risk management and those that provide independent assurance. It’s important to ensure that each of these functions also adequately addresses cyber risks.

In reality, only 54% of Swiss respondents have an operational cybersecurity programme, 5% below the global average and 7% below the average for Western Europe. Overall the global survey reveals serious blind spots when it comes to recognising the specific risks of fraud and economic crime. The trick is to recognise these blind spots before any fraud incident takes place. While it’s encouraging that 92% of Swiss firms expect to either significantly increase (6%), increase (25%) or maintain (61%) the amount of funds used to combat fraud, the issue is more about how these funds are actually spent. Presently, the stumbling block is often a lack of coordination and a failure to see the big picture.

The areas of a business that investigate fraud, manage fraud risks and report to the board or regulators are often disjointed and siloed. If each department builds a programme based on their own perception of fraud, operational gaps will eventually arise. So it’s vital to ensure all stakeholders understand the big picture of fraud risk management and how their own function fits into it. For global companies, establishing a centralised fraud detection and investigation function is a very good starting point.

And for any organisation, we can suggest four golden rules of effective fraud prevention:

Instant takeaway: four steps to fight fraud

  • Recognise fraud when you see it
  • Take a dynamic approach
  • Harness technology
  • Invest in people, not just machines

Follow these rules of thumb and you’ve already increased your chances of navigating an increasingly complex economic crime landscape. If you want to find out more, check out PwC’s Global Economic Crime and Fraud Survey 2018, and the deep dive into the Swiss findings ((link)), or contact us for a more in-depth conversation about how to tackle fraud and economic crime.

Luxembourg to introduce VAT grouping

The Luxembourg Ministry of Finance announced last week that Luxembourg will introduce VAT grouping. The draft law will be submitted in the coming weeks to Parliament and the EU consultation process will be run in parallel. The date of entry into force must still be confirmed and it depends on the speed and the outcome of the legislative process. Bearing in mind the speed with which Luxembourg used to adopt new legislation, the VAT grouping provisions may already be available in autumn 2018.

On the above basis, Swiss businesses having subsidiaries in Luxembourg should undertake an assessment of the prospective VAT benefits of the VAT group in Luxembourg and the impact on the input VAT recovery position. Additionally, attention should be given to the Luxembourg companies having branches in the Member States of the European Union, which implemented the judgment of the Court of Justice of the European Union in Skandia, i.e. branches of a VAT grouped head offices are to be viewed as a separate taxable person with the consequence that any cost allocations between the VAT grouped head office and its branch are considered to be supplies for VAT purposes subject to VAT under the reverse charge. If the activity of the branch is to a greater extent exempt from VAT, the reverse charge VAT due on the cost allocations from the head office would lead to additional irrecoverable VAT. This is dependent on the way and the extent in which the Member State of the branch has implemented the Skandia provisions (e.g. Italy has recently fully implemented the Skandia judgment).

With the above in mind, it is now a good time to undertake an impact assessment (i.e. benefit of VAT grouping of the Luxembourg established companies vs the impact of this VAT grouping on the European branches (i.e. reverse charge VAT liability) because of the Skandia provisions) and explore options for the most beneficial set-up.

We are happy to advise you further on the above.

Contact Us

Dr. Niklaus Honauer
Partner, Indirect Taxes, Zürich
+41 58 792 59 42
niklaus.honauer@ch.pwc.com

Marcella Dzienisik
Senior Manager, VAT for financial services, Zürich
+41 58 792 49 38
marcella.dzienisik@ch.pwc.com

Disclose 27, Focus piece 3: Fit for Growth – the smart way to cut costs, restructure and renew

Disclose – PwC’s online magazine

«It takes people, digital technologies and trust to achieve top performance.»

Reading our latest issue of Disclose (disclose.pwc.ch/27/) you’re sure to get an adrenaline rush as we investigate a topic with particularly close connections to sport: high-performing organisations.

Focus piece 3 gives you an insight into the topic Fit for Growth – the smart way to cut costs, restructure and renew

Companies across industries and geographies are realising that the only way to unleash profitable growth is to cut costs as rigorously as they concentrate on growing revenues. As with any living organism, there’s no profitable growth without equally robust pruning. To get fit enough to thrive in an increasingly tough environment, you need to focus on a small number of differentiating capabilities, align your cost structure to these capabilities, and organise for growth. In this article we look at how the world’s fittest companies have mastered these three components to achieve and maintain healthy, profitable growth – and at the principles that can enable companies in this country, to to prune their business for sustained success.

Read the full report here.

Contact

Niklas Hoppe
Partner, Strategy& Switzerland
+41 58 792 2875
n.hoppe@strategyand.ch.pwc.com