Latest updates

Employee Stock and Stock Option Plan Legislation Still Pending
Walder Wyss
  • Switzerland
  • 03 March 2006

Rising stock markets have seen a return of employee stock and stock option plans as a common part of compensation and incentive packages for executives and other highly compensated employees. A draft bill including revised rules on the taxation of benefits granted under employee incentive plans is pending in the second chamber of the Federal Parliament.

Swiss-EU Savings Agreement Takes Effect
Walder Wyss
  • Switzerland
  • 03 March 2006

The Swiss-EU Savings Agreement provides for measures equivalent to those laid down in the EU Directive on the Taxation of Interest Payments and the EU Parent-Subsidiary Directive. The relief from withholding tax on dividends under the agreement will strengthen Switzerland's position as a location for holding companies and promote investment activity in the jurisdiction.

New Guidelines on Lump-Sum Expense Deductions
Walder Wyss
  • Switzerland
  • 24 February 2006

In 2005 the Federal Tax Administration issued a circular letter on lump-sum deductions with respect to foreign-to-foreign business transactions. Swiss resident corporations and foreign resident corporations with a Swiss permanent establishment are no longer allowed to apply lump-sum deductions on foreign-to-foreign business transactions, but must keep records of their expenses.

Corporate Tax Reforms to be Debated by Parliament
Walder Wyss
  • Switzerland
  • 24 February 2006

Through the proposed law known as the Corporate Tax Reform II, the Federal Council aims to make Switzerland more attractive to entrepreneurs and investors. However, provisions relating to the recharacterization, under certain circumstances, of tax-free capital gains as taxable distributions are controversial and are likely to be debated by the first chamber of the Federal Parliament in spring 2006.

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