Revised Swiss corporate tax reform plan unveiled

The Federal Council has finalised its proposal for overhauling the Swiss corporate tax landscape after voters rejected initial plans a year ago. The central plank remains ‘patent box’ relief for innovation, while a family tax break sweetener has been added. Switzerland has come under intense pressure from the European Union (EU) and the Organisation for Economic Cooperation and Development (OECD) to change “harmful” tax practices in the existing tax regime. Most notably, cantons currently charge some foreign multinationals lower rates for profits derived outside of Switzerland. Following a consultation period, the Swiss government released the final version of its latest reform proposal on Wednesday. It attempts to steer a path between meeting international tax standards and retaining the 4,000 foreign firms that enjoy breaks under the existing regime. ‘Tax proposal 17’ calls for at least 30% of company profits to be fully taxed by cantons before so-called patent box and other ...