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October 5, 2016
2016-1698

Swiss canton of Zug releases plan for local implementation of Corporate Tax Reform III

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.

The Government of the canton of Zug on September 19, presented its strategy for the implementation of CTR III into cantonal tax law. The core component of the plan is the reduction of the corporate income tax rate to approximately 12% (including federal tax). Furthermore, additional tax relief measures will be introduced at the cantonal level such as a patent box, increased deduction of research and development (R&D) costs and a notional interest deduction on surplus equity.

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

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Full text of Tax Alert 2016-1698

 

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