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December 16, 2016
2016-2150

Swiss canton of Berne expresses views on implementation of Corporate Tax Reform III

The Swiss Corporate Tax Reform III (CTR III) provides for certain preferential tax regimes to be replaced by a new package of internationally accepted measures. The changes in the law are intended to be accompanied by a broad reduction in cantonal corporate income tax rates to ensure that Switzerland remains attractive for international companies in an environment which in the future will be less driven by base erosion and profit shifting (BEPS). There is also a desire to give companies planning certainty for the future and at the same time ensure compliance with international taxation standards.

The Government of the canton of Berne on November 22, expressed its views on implementing CTR III in cantonal tax law. CTR III is to be implemented within the framework of the canton of Berne's tax strategy. The central feature is to be a cut in the effective corporate income tax rate to approximately 16.37% (depending on the municipality, including federal tax). The plan also includes a patent box and a super deduction for research and development costs (R&D). The cantonal government has not yet addressed all the planned measures.

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 2016-2150

 

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