The Swiss Corporate Tax Reform III (CTR III) foresees the replacement of certain preferential tax regimes with a new set of internationally accepted measures. The legislative changes will implement a broad reduction of the headline corporate tax rates and will ensure that Switzerland remains attractive for multinational corporations in a post-base erosion and profit shifting (post-BEPS) environment by providing planning certainty for the future and ensuring compliance with international taxation standards. On June 17, the Swiss Parliament adopted the final CTR III package to strengthen Switzerland's attractiveness as a business location. The new legislation will be subject to a public vote, which will likely take place in February 2017, and is expected to become effective on January 1, 2019. The cantons are required to adjust their cantonal tax laws in accordance with CTR III.

The Government of the canton of Basel-Landschaft disclosed its strategy for the implementation of CTR III in the canton of Basel-Landschaft on August 24. The main objective is an implementation of a well-balanced tax reform. Inter alia, the plan includes the introduction of the patent box as well as the research and development (R&D) super deduction. Additionally, the corporate income tax rate will be gradually reduced to approximately 14% (including federal tax) over a period of five years.

A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details.

———————————————
ATTACHMENT

Full text of Tax Alert 2016-1599