The Swiss Federal Council announced its support for the proposed changes to the corporate tax base in Switzerland, known as – Corporate Tax Reform III (CTR III), on the eve of a referendum on the issue, which will be held early next year.
CTR III cancel corporate tax arrangements, which are no longer in line with international standards. These primarily include the cantonal tax status, for possession of residential and mixed companies.
“With regard to measures of tax legislation, the focus is on the promotion of innovation,” said Federal Department of Finance on 27 October.
“In general, the reform will allow Switzerland to remain an attractive location for companies, and for each canton, the ability to adapt their fiscal policies in the economic and financial situation,” said a department statement. “Reform will prevent a mass exodus of existing companies with the status and thus, the possible tax losses amounting to more than CHF 5 billion (USD 5 billion) for the Federation, the cantons and communes.”