Category: Tax

The Case: The most significant recent development in Federal direct taxation (as of 2026) is the adjustment for so-called fiscal drag. Under this mechanism, tax rates and selected deductions are regularly indexed to inflation, thus helping to prevent taxpayers from moving into higher tax brackets solely due to price increases.

The Case: A taxpayer sought to claim input tax on consulting services. The Federal Administrative Court denied the deduction on the grounds that the services had already been rendered before the invoice was issued. The Commentary: The Federal Supreme Court clarified that the right to input tax deduction depends solely…

The Case: A tax policy issue that will be addressed in the 2026 spring session in March: A motion by Beat Riederer proposes extending Switzerland’s stamp duty to derivatives and structured products, which are currently exempt from stamp duty. The Commentary: The Federal Department of Finance (FDF) opposed the move…

The Case: The dispute was about the inter-cantonal allocation of both profits and capital to the Ticino-based operating facilities of a company participating in the construction of the Gotthard Base Tunnel. The Commentary: Pursuant to a prior tax ruling, the cantonal tax authorities involved (Ticino, Nidwalden, Uri, and Zurich) had…

The Case: There is no denying that the taxpayer is currently subject to double taxation by the cantons of Zurich and Graubünden. The issue in dispute is whether either the taxpayer’s right of appeal or the right of taxation of the second assessing canton (Zurich) has been forfeited.

The Case: In a report published by the U.S. Department of the Treasury, the OECD confirmed the adoption of a so-called “side-by-side solution,” effectively formalising the United States’ withdrawal from the OECD minimum tax framework. The Commentary: US multinational enterprises will continue to be subject to the American tax system,…

The Case: Since mid-2025, it has become increasingly clear that the United States intend to withdraw from the OECD minimum tax framework; a final decision is expected by the end of this year. The Commentary: For Switzerland this development primarily entails greater uncertainty. A unilateral suspension of the minimal tax…

The Case: L’initiative pour l’avenir, up for a nationwide vote on 30 November, has revived a familiar question: How does Switzerland’s inheritance tax regime compare with the one of its OECD peers? The Commentary: While Switzerland does not tax inheritances dramatically less than others, its highly decentralized cantonal system and…

The Case: In the initiative text one cannot find any definitions of as to who is taxable (subject). Consequently, even if the Swiss population did vote in favour of the initiative, the Federal Council would still be required to issue implementing ordinances within three years* before any inheritance cases could…

The Case: Does the tax-neutral transfer of commercial property to a company constitute tax avoidance? The Commentary: In principle, the tax-neutral transfer of commercial property to a company cannot be classified as tax avoidance per se. The decisive factor is whether the arrangement fulfils the three cumulative elements: Objective element,…

The Case: The Young Socialists’ initiative proposing a 50% federal estate tax on estates exceeding CHF 50 million is scheduled for a nationwide vote on 30 November 2025. The Commentary: Legal vacuum: No definition as to who is subject to tax!