New Tax Proposal 17 affects shareholders too
In the future, all legal entities will be subject to the same tax rules. Specifically, this means that companies previously taxed in the ordinary way will pay less tax, while status companies will pay more tax. In addition, flat-rate tax credits are being extended. Operating entities of foreign companies in Switzerland should also no longer be subject to double taxation internationally.
Furthermore, there will be an increase in dividend taxation for shareholders at the federal level, as well as in most cantons. At the federal level alone, the tax reform in Switzerland will result in further adjustments for shareholders:
- Restrictions to the capital contribution principle
- New rules regarding transposition
By way of a transitional measure, special rate solutions for the disclosure of hidden reserves are to apply for companies that relinquish their special status. Moreover, companies that transfer their domicile to Switzerland can benefit from additional write-downs in the first few years.