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Old 11.08.2016, 12:46
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Corporate tax reform iii?

Hi I'm new on this forum and I came to Switzerland from my home country to work for a big US company that has its EMEA hq here in CH. However the new corporate tax reform that will abolish the special taxation system is going to affect us and our company is evaluating other countries for a relocation.
Ireland seems to be the best choice, but also Amsterdam has been considered.
I frankly don't get how Switzerland won't lower taxes to a competitive level... I mean, even the UK after brexit said that they will lower the corporate tax to 15%. I think the swiss are to proud of their country and they think that the big corporation are only here to exploit their beautiful little country, but they are going to see a massive exodus of foreign multinationals corporation and maybe some of them will be happy too and blame it all on the EU.
Are some of you affected by this corporate tax reform? And will your company leave?
Let me knok
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Old 05.01.2017, 16:36
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Re: Corporate tax reform iii?

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I frankly don't get how Switzerland won't lower taxes to a competitive level...
As far as I understand, the current taxation system of Switzerland gives special tax holiday/ status to multinationals investing in Switzerland while local companies don't have access to this kind of tax benefits (e.g. a local bakery might pay tax at statutory rate of 20% while foreign invested company pays tax at 4%). Because of this discrimination (foreign investors vs domestic investors) Switzerland is pressured by the outside world, mostly the EU because this kind of discrimination can constitute State Aids according to the treaty between Switzerland and the EU.

Because of this Switzerland needs to come up with something that:
1. can apply to both foreign and domestic investors the same way (no more discrimination)
2. attractive
3. safeguard federal budget

Hence, since Switzerland has to scrap all the special regimes, it proposes to cut in statutory tax rates and also some additional measures like patent boxes. If it lowers the tax rates too much it will not collect enough budget.

With those not to low proposed tax rates, Switzerland already expects to face huge shortfall in tax revenues and some cities might increase personal income tax.

The balance is not so easy. And Switzerland has little choice. It will be an interesting time ahead...
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Old 05.01.2017, 18:07
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Re: Corporate tax reform iii?

You really think the big corporations pay tax like everybody else....
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