In June 2016, the Swiss parliament passed the final corporate tax reform package meant to strengthen Switzerland as a competitive business location for foreign companies or entrepreneurs. The tax reform plan (CTR III) includes several tax reform measures related to the federal and cantonal tax laws. These measures may affect especially multinational enterprises that are currently doing business in Switzerland.
Switzerland is offering one of the most competitive business environments, not only on European level, but also globally. This is a consequence of the business – friendly strategy adopted by the Swiss government. Although many important global corporations have their headquarters in Switzerland, most companies incorporated in Switzerland belong to small businesses. Therefore, it’s only natural that small businesses benefit from various tax incentives, available through dedicated government programs.
Switzerland has decided to permanently quit joining the European Union, formally withdrawing a request made in this regard, sitting in the drawers of EU’s officials buried for 24 years.
Swiss Foreign Minister, Didier Burkhalter, forwarded a response to officials in Brussels to consider the application "as withdrawn" in June 2016. The event took place just a week before the referendum that decided the fate of Britain in the European Union, concluded as what is now known as “Brexit”.
The Corporate Tax Reform III has been approved by the Swiss Parliament. This tax reform was created in order to preserve Switzerland’s attractiveness as a location for multinational companies that want to take advantage of a more relaxed taxation. Due to the potential referendums that are in order and implementation processes of the new reform, the new measurements are expected to enter into force somewhere before the beginning of 2019.
