The Swiss Federal Act on Tax Reform and AHV Financing (TRAF), which came into force on January 1, 2020, presents both opportunities and challenges for companies. It is important for entrepreneurs to be familiar with the new conditions introduced by the reform and to be able to use them to best effect.
For example, companies with an in-house R&D department can use tools for tax optimization. They can use a patent box to reduce the tax assessment basis for the income resulting from their own patents by up to 90 percent. However, the amount of the allowance depends on the canton.
Another means of tax optimization is based on the actual R&D expenses incurred. The tax deduction may be up to 50 percent. In other words, with expenses of CHF 200,000 for R&D, a company could reduce its taxable profits by up to CHF 100,000.