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 Fribourg presented its plan for implementing CTR III in cantonal tax law on September 19. The central feature is to be a cut in the corporate income tax rate to approximately 13.72% (depending on the municipality, including federal tax). The plan also provides for the introduction of a patent box and a super deduction for research and development expenses (R&D).

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

———————————————
ATTACHMENT

Full text of Tax Alert 2016-2151