THE FEDERAL LAW ON TAX REFORM AND THE AVS LOAN
On 28th September 2018, the Swiss Parliament approved the “Federal Law on Tax Reform and the AVS financing” (which colud be subjected to a referendum on 19th May 2019), with the aim to re-establish the tax system image, to make the Country more attractive and make to impose in adeguate way income, as well as to promote fiscal competitiveness, limiting as much as possible tax losses for Municipalities, Cantons and Confederation.
In particular, the Federal Council decided the abrogation of some favorable tax regimes (not tollerate from EU), with the introduction of new ones, for example the Patent Box (with a maximum tax relief of 90% income, for profits related to trademaks and patents) and some optional deductions on research and development activities (up to a maximum of 50% of income), and to own loan (against Cantons with a minimum tax burden of at least 18,03%).
This Federal Law introduces the obligation for the Cantons to let be known hidden reserves inside to the financial statment, in the cases of transfer from another Country or transition from favorable tax regime to an ordinary regime (with the possibility of apply reductions in the calculation of the wedith tax.
Moreover, in order to avoid double taxation, also against the Swiss permanent establishment of foreign companies, it was decided on the overall tax calculation regard to all tax paid abroad, no more recoverable interest, dividends and canons.
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