Tax Proposal 17 – Part 1: Initial Situation

On March 21, 2018, the Federal Council adopted the message for Tax Proposal 17 (SV17). This responds to international developments in the field of corporate taxes and aims to enhance Switzerland's attractiveness as a business location. The initial situation of the proposal, its objectives, and the specific adjustments being made according to the message are explained in our series on Tax Proposal 17.

Switzerland risks falling behind in tax competition

‍The legislature is currently working on Tax Proposal 17, which became urgently necessary after the rejection of the Corporate Tax Reform III (USR III) one year ago. The current legal situation no longer meets international standards and diminishes the attractiveness of Switzerland as a business location. Many countries worldwide and in Europe are reducing corporate taxes to be more attractive to companies. Moreover, Switzerland is also on the EU and OECD grey lists due to its tax privileges for international companies and risks losing ground in international tax competition.

‍Legislature recognizes the need for action

‍The Federal Council has recognized the urgency and already sent Tax Proposal 17 for a three-month consultation period in September 2017. At the end of January 2018, the key points of the message were determined and just two months later, on March 21, the message was also adopted. The parliament may pass SV17 at the earliest in its autumn session and if no referendum is taken, the first parts would come into force at the beginning of 2019. You will learn which adjustments are being made according to the draft law in the second part of our series.

Findea helps you keep your taxes simple and straightforward.

• Further information
   
• Calculate offer for trusteeship