A proposal to reduce the tax burden on employee participation in start-ups and family businesses has advanced following approval by committees of the Council of States (“WAK Ständerat”) and the National Council (“WAK Nationalrat”).
Under the current tax framework and practice of the cantonal tax authorities, the valuation of employee stocks for tax purpose is often an issue for unlisted companies—in general, start-ups and family businesses. This makes employee stocks of unlisted companies unattractive from a tax perspective compared to employee stocks of listed companies.
The initiative would provide tax benefits in terms of: (1) the tax valuation of employee stocks for wealth tax purposes; (2) capital gains treatment on the sale of employee stocks; and (3) taxation of employee stock options. Under the proposal:
Read a May 2019 report prepared by the KPMG member firm in Switzerland
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