In May 2019, the people of Switzerland voted to adopt the Federal Act on Tax Reform and AHV Financing (TRAF), marking the most significant development in decades for the Swiss tax world.
The widespread impact of the reform will affect almost all businesses involved in Switzerland, while the swift implementation date of January 1 2020 has meant that the demand for tax experts has peaked.
The TRAF may have dominated the front pages, but in reality, it marks just one of the many tax-related changes that businesses face as they enter the 2020s. So much so that the EU's decision to remove the landlocked nation from its tax haven 'grey list' only makes a passing mention.
Thus, it should be of no surprise that ITR has partnered with leading tax advisors to provide insights into how businesses are adapting and evolving with the developments.
The need to ensure legal certainty forms the crux of burckhardt Ltd's article, which looks at the new provisions suggested by the upcoming Federal Act on the Implementation of International Tax Agreements (ITAIA).
The article by Prager Dreifuss discusses how the TRAF has paved the way for abolishing privileged tax regimes on a cantonal level and assesses the transitional measures in place to mitigate the expected tax burden.
The TRAF has also inspired a renewed culture of innovation through the offer of tax incentives on patents and R&D programmes. Tax Partner AG – Taxand's article examines how the benefits will keep investors interested in flocking to Switzerland for its well-renowned tax and business appeal.
The Swiss Federal Council has issued guidelines for reforming the existing withholding tax and stamp duty regimes. The article from Andersen Tax Switzerland explores the necessity of the developments and envisages how these strengthen the Swiss capital market.
Alongside reform, multinationals are actively embracing digital transformation. Deloitte's article looks at how tax departments are turning to next-gen systems such as S/4 HANA to prepare for future challenges and opportunities.
We hope the eighth edition of this Switzerland guide provides useful insight as taxpayers enter the roaring twenties.
Prin Shasiharan
Commercial editor
ITR
