New Proposal for Swiss Corporate Tax Reform

The Steering Committee representing the cantons and Swiss Federation issued its recommendation regarding the implementation of a modified corporate tax reform to the Swiss Federal Council on June 1, 2017. The corporate tax reform has been renamed the Tax Proposal (“T.P. 17”) and is, in general, based on the Corporate Tax Reform III (“C.T.R. III”), which was rejected on February 12, 2017, by Swiss voters.

The Steering Committee met representatives of cities, municipalities, political parties, business associations, and labor unions in order to achieve a more balanced, transparent, and politically accepted corporate tax reform. Compared to the C.T.R. III, the package has been adjusted and now also includes a social component. As expected, the preferred tax regimes provided by Swiss law will be abolished and the main goals of the reform remain the same (i.e., to maintain Switzerland as an attractive and competitive business and tax location, to be in line with international best practices, and to generate sustainable tax revenues). This article summarizes the most important differences between the C.T.R. III and T.P. 17.

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