The tax reform and the financing of the AHV (TRAF), approved by the Swiss people in May 2019 and effective from January 1st, 2020, is no longer to be presented to companies.
While this reform primarily aims to abolish the privileged tax regimes, it also proposes new measures to preserve Switzerland's tax competitiveness. This is the case, for example, of the declaration of hidden reserves, which could be of interest to your entity if it benefited from a holding company or auxiliary company tax regime until 31.12.2019.
Indeed, this measure allows a gradual switch from preferential taxation to ordinary taxation, which ensures competitive taxation over a five-year transition period.
The Geneva tax authorities have recently published on their website the application modalities. We present below the outlines of these rules. The application of the declaration of hidden reserves at the exit of the cantonal tax regimes requires the following procedure:
Our experts are at your disposal to help you determine your potential tax savings that could result from this measure, as well as to assist you in this process.
Article written by Jean Gafan and Nathalie Pellanda Gaud