Federal practices concerning key companies and Swiss Finance Branches from 1 January 2019

As part of the project concerning tax reform and the financing of the AVS (RFFA), the Federal Tax Administration (FTA) will no longer apply federal practices in the matter of major companies and “Swiss Finance Branches” for companies that would like to benefit for the first time.

Thanks to the RFFA, the necessary legislative provisions will be taken, in order to adapt the law in terms of corporate taxation to international standards. As stated in the Federal Council’s Message concerning Tax Project 17 (new: RFFA), the rules concerning federal practices in the matter of major companies and “Swiss Finance Branches” will also be repealed on this occasion.

Contrary to the repeal of the rules concerning companies with special cantonal status, the abandonment of these federal practices does not require any legislative change.

Federal practices concerning the international tax division for the main companies and the “Swiss Finance Branches” can no longer be claimed for the first time by taxpayers as of January 1, 2019 (absence of new concessions). Taxpayers who have applied these practices before 1 January 2019 will still be able to benefit from it in 2019. This also applies to taxpayers who will benefit for the first time from 1 January 2019 on these practices on the basis of a preliminary tax agreement. (ruling), provided that the competent tax authority has countersigned the ruling prior to the publication of this notice.

The Circular n. 8 of the AFC “International tax division of the main companies” of 18 December 2001, will be adapted to this effect.

Press release of the Swiss Federal Government of 15 November 2018 –