New tax rule for systemically important banks enters into force
8 March, 2019
The Federal Act on the Calculation of the Participation Deduction for Systemically Important Banks will enter into force retroactively with effect from 1 January 2019. This was decided by the Federal Council during its meeting on 8 March 2019.
The law corrects the calculation of the participation deduction so that the profit tax burden of the group parent company of a systemically important bank remains unchanged if it issues too-big-to-fail instruments (e.g. bail-in bonds).
In the final vote of 14 December 2018, Parliament unanimously adopted the Federal Act on the Calculation of the Participation Deduction for Systemically Important Banks. The Federal Council’s decision is conditional on the referendum not being held before 8 April 2019.
Press release of the Swiss Federal Government of 8 March 2019 – www.admin.ch