January' 2015 | Archive | Blog

Switzerland Changes Tax Deductions for Expats


Switzerland continues its tax reforms and revises the rules on tax deduction applied to expatriates until now. The Swiss Federal Department of Finance announces new regulations starting with the beginning of 2016. These changes come after long debates started in 2009 when the legislation on expatriates was in issue.


Switzerland Changes VAT Rules


At the end of 2014 Switzerland decided to make some changes in its taxation system. Therefore, the beginning of 2015 will bring two major changes to the appliance of the country VAT once a new Value-Added Tax Ordinance will be issued. One of these changes targets foreign companies that will be allowed to register for taxation in Switzerland, while the second refers to group taxation.

Swiss Corporate Tax to Be Reformed According to EU Regulations


Aiming for better cooperation, Switzerland has signed a statement with the European Union’s member states for the abolishment of the corporate tax regime, while EU states promise to suspend all countermeasures. Swiss finance minister and EU and EFTA (European Free Trade Area) countries started negotiations in July and in October concluded the agreement.


Swiss Withholding Tax for Foreigners to Be Amended


The Swiss Federal Council has prepared new reforms with respect to the withholding taxes applied to foreigners. The reform mainly refers to a second assessment to the withholding taxes applied to incomes made in Switzerland by foreign residents. The Federal Council adopted the amendments to the withholding tax regime as a result of the Swiss Federal Supreme Court decision from 2010. The court ruling stated that the appliance of the withholding tax to certain incomes disagreed with the Agreement on Free Movements of Persons concluded by Switzerland with the European Union.