Latest updates

Swiss Upper House issues revised Tax Proposal 17
Walder Wyss
  • Corporate Tax
  • Switzerland
  • June 22 2018

The Council of States recently issued a revised version of Tax Proposal 17, a proposal for corporate tax reform. The new proposal is based on the government's March 2017 proposal and aims to set the basis for new rules on Swiss corporate tax (the last proposal having been rejected in a nationwide referendum in February 2017) and secure and enhance Switzerland's overall attractiveness as a business location. Under the proposal, Switzerland will repeal the existing special corporate tax regimes.

Switzerland and Brazil sign double taxation agreement
Walder Wyss
  • Corporate Tax
  • Switzerland
  • May 18 2018

Switzerland and Brazil recently signed a double taxation agreement, which is a major achievement for both countries and has been a long-standing demand of the private sector. The new agreement will significantly increase Switzerland's attractiveness for Latin American investments and provide investors with legal certainty in tax matters.

Revised domain name rules grant further powers to registries and anti-cybercrime services
Walder Wyss
  • IT & Internet
  • Switzerland
  • April 24 2018

A revised version of the federal Ordinance on Internet Domains recently entered into force. It gives the responsible registries the possibility of temporarily blocking the top-level domain names '.ch' and '.swiss' where they are being used for phishing or malware activities. In addition, anti-cybercrime services can request that registries block the domain names. However, these services require prior recognition from the Swiss Federal Office of Communications.

Government adopts Tax Proposal 17 and submits dispatch to Parliament
Walder Wyss
  • Corporate Tax
  • Switzerland
  • April 13 2018

The government has adopted Tax Proposal 17, a new proposal for corporate tax reform. The purpose of this new proposal is to set the basis for new rules on Swiss corporate taxation and to secure and enhance Switzerland's overall attractiveness as a business location. Under Tax Proposal 17, Switzerland will repeal the existing special corporate tax regimes. As opposed to the proposal that was rejected in February 2017, the current proposal appears to have attracted wider political support.

Initial coin offerings – more clarity on tax implications
Walder Wyss
  • Corporate Tax
  • Switzerland
  • February 02 2018

Switzerland has become a major hub for initial coin offerings (ICOs). Yet to date, there has been little clarity about the resulting tax implications. Recent discussions and tax ruling negotiations with representatives of several tax authorities in Switzerland have provided more clarity on the tax implications of ICOs, at least regarding tokens issued by Swiss companies raising funds under the promise of a participation in future revenues.

Draft e-ID Act to be prepared by Summer 2018
Walder Wyss
  • IT & Internet
  • Switzerland
  • November 28 2017

Switzerland is in the process of adopting legislation on electronic identification. The Federal Council published a preliminary draft e-ID Act and opened it for consultation by any interested actors. The Federal Council recently shared the consultation findings and commissioned the Federal Department of Justice and Police to prepare a revised draft act by Summer 2018.

Federal Council publishes draft of revised Federal Data Protection Act
Walder Wyss
  • IT & Internet
  • Switzerland
  • October 03 2017

The Federal Council recently issued a draft of the revised Federal Data Protection Act. This draft marks yet another decisive step towards the overhaul of the Swiss data protection landscape. The act's revision is an ongoing process intended to modernise Switzerland's data protection landscape and align it with revised EU legislation.

Government publishes detailed draft for corporate tax reform
Walder Wyss
  • Corporate Tax
  • Switzerland
  • September 22 2017

The government recently published a new detailed draft for a corporate tax reform. The purpose of this new draft is to set the basis for new rules on corporate tax (the last proposal having been rejected in a nationwide referendum) and to secure Switzerland's overall attractiveness as a business location. The draft includes several measures that have been discussed in the past, but it also addresses the criticism that contributed to the rejection in the February referendum.

Parliament Passes Bill to Overhaul VAT System
Walder Wyss
  • Corporate Tax
  • Switzerland
  • September 04 2009

Parliament has passed the Value Added Tax Act Reform Bill. Barring a referendum, this new legislation will completely replace the existing legislation and will introduce significant changes in key areas; businesses will have only a few months to prepare for the transition.

The Mortgage Bond System: An Alternative Source of Finance
Walder Wyss
  • Securitisation & Structured Finance
  • Switzerland
  • April 14 2009

The ongoing disruption of credit and capital markets is urging banks to pursue refinancing solutions that have rarely been used in the past or that have previously been used in a different context. A recent transaction shows that the mortgage bond system might become an efficient refinancing tool in situations where a secured refinancing transaction is difficult to structure or an off-balance sheet securitization is not possible.

Overview (May 2008)
Walder Wyss
  • Securitisation & Structured Finance
  • Switzerland
  • May 27 2008

Including: Assignment of Accounts Receivable and Other Payment Claims; Security in Real Estate Lending; Synthetic Securitization; Alternative Risk Transfer; Merger Law Benefits for Real Estate Portfolio Transactions; Opco/Propco Transactions; Taxation of ABS Transactions; Other Issues.

Opco/Propco Structures under Swiss Law
Walder Wyss
  • Securitisation & Structured Finance
  • Switzerland
  • December 04 2007

The use of operating company ('opco') and property company ('propco') structures has recently become increasingly common in the Swiss lending and securitization market. Using these structures often leads to more efficient and less expensive financing. This update outlines some of the most significant features and issues related to setting up an opco/propco structure.

Commission Cites Trade Agreement in Tax Dispute
Walder Wyss
  • Corporate Tax
  • Switzerland
  • September 07 2007

Rates of corporate income tax in Switzerland are low compared to those of some other European countries, making the jurisdiction an attractive location for multinational companies. The European Commission has recently formally challenged the cantonal corporate tax regimes, holding that they are in violation of Article 23 of the 1972 Free Trade Agreement between the European Economic Community and Switzerland.

Transferring Agreements under Transfer of Assets Rules
Walder Wyss
  • Securitisation & Structured Finance
  • Switzerland
  • June 19 2007

A provision of the Swiss Merger Act facilitates a transfer of assets from the originator to the securitization vehicle in a securitization transaction. Although some issues require clarification, the new transaction method will in most cases facilitate the transfer of a portfolio consisting of a large number of agreements, particularly with regard to the third-party consent required for such a transfer.

Purchase of a Participation and Indirect Partial Liquidation
Walder Wyss
  • Corporate Tax
  • Switzerland
  • September 01 2006

In June 2006 a new federal law was passed governing the taxation, at both federal and cantonal level, of an indirect partial liquidation involving the sale of participations equal to 20% or more of the nominal share capital of the relevant company, and limiting the restricted period to a maximum of five years. The new law significantly improves the tax position of the seller and the purchaser.

CMBS Wave Finally Hits Switzerland
Walder Wyss
  • Securitisation & Structured Finance
  • Switzerland
  • August 01 2006

Switzerland has recently seen a major increase in both origination and securitization activity in the commercial real estate market. It is expected that this year will see another increase in commercial mortgage-backed securitization (CMBS) transactions, and that future multi-jurisdictional and pan-European deals including Swiss assets will be conducted.

Civil Code Revised to Reflect Importance of Charities and Foundations
Walder Wyss
  • Corporate Tax
  • Switzerland
  • March 10 2006

The section on foundations of the Swiss Civil Code has been revised to take into account the importance of charities and not-for-profit institutions in Switzerland, as well as the corporate governance issues associated with their increasing importance and the value of the assets they manage. Some of these amendments also have an impact on the tax situation of the founders and donors.

Stamp Duty Act Enters into Effect
Walder Wyss
  • Corporate Tax
  • Switzerland
  • March 10 2006

Revisions to the Federal Stamp Duty Act entered into force on January 1 2006. Among other things, foreign resident corporations with shares listed on a recognized stock exchange and their foreign resident affiliates are exempt from the Swiss transfer stamp duty triggered on sales or purchases of taxable securities from a Swiss securities dealer or intermediated by a Swiss securities dealer.

Swiss-EU Savings Agreement Takes Effect
Walder Wyss
  • Corporate Tax
  • Switzerland
  • March 03 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.

Employee Stock and Stock Option Plan Legislation Still Pending
Walder Wyss
  • Corporate Tax
  • Switzerland
  • March 03 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.