The case

Bern, 12.01.2022 – In future, the establishment of a trust should also be possible under Swiss law. On behalf of Parliament, the Federal Council is therefore proposing the introduction of a new legal institution in the Code of Obligations (CO). Today, at its meeting the Federal Council opened the corresponding consultation procedure. This will last until 30 April 2022. For more see link (German) / link (French) / link (Italian)

The commentary

In addition to the new regulation of trusts in the CO, various federal laws are to be amended accordingly. In particular, the tax laws should explicitly regulate how trusts are treated for tax purpose. Currently, the taxation is based on the general principles of the tax law and two circulars. Specifically, the Federal Council proposes to maintain the current principles, see Report 5.1.4.5 “Overview”:. Irrevocable discretionary trusts – without fixed interest of the beneficiaries resident in Switzerland – are to be taxed in principle in the same way as foundations.

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