Switzerland Rejects Corporate Tax Reform

Proposed changes to Switzerlands corporate taxframework have been rejected in a referendum.

Provisional results show that the Corporate TaxReform III (CTR III) package was opposed by just over 59 percent of voters inthe February 12 referendum.

CTR III would have abolished corporate taxarrangements that the Swiss Federal Council deemed as no longer in keeping withinternational standards. These related principally to the reduced taxation ofholding, domiciliary, and mixed companies. To avoid any adverse impact onSwitzerlands international competitiveness, it was also proposed to givecantons the option of introducing a special patent box regime for intellectualproperty income, and of applying a higher deduction for research anddevelopment expenditure.

Reacting to the vote, Finance Minister UeliMaurer told a press conference, "It will not be possible to find asolution overnight." He warned that it could now take the Government ayear to devise new proposals and longer still to implement them.

Tax-news.com