“Tax Proposal 17”—as the legislative tax reform proposals have been known—was discussed in the first chamber of the Parliament (Council of States) on 7 June 2018. The Council of States approved the application of an economic commission with amendments.
The amendments include counter-financing measures as well as social compensation measures. However, certain measures were rejected, including proposals for a notional interest deduction (which instead would be replaced by a deduction on equity financing). Other measures were modified including that intragroup loan receivables are to be considered when calculating the capital tax relief.
After the debate of the legislative proposal in the Council of States, the National Council is next to discuss and consider the legislation during its autumn session (10 - 28 September 2018). Until then, the legislative proposal will be discussed by the economic commission of the National Council. A final decision of the parliament is expected in autumn 2018. If no referendum is called, the measures relevant for the companies would be effective beginning in 2020.
Read a June 2018 blog from the KPMG member firm in Switzerland
© 2019 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.