On 9 June 2017, the Swiss Federal Council has adopted the main parameters for Tax Project 17, which are very much in line with the concept of the corporate tax reform III (CTR III) rejected on the 12th of February 2017.
This substitute bill should achieve the following three objectives: securing the attractiveness of Switzerland as a business location, international acceptance and sufficient tax revenues.
The abolishment of the internationally criticized tax practices remains the key element and primary driver for the tax reform. The tax project stipulates also the introduction of an OECD compliant patent box and a super deductibility of research and developments costs up to a maximum of 50%.
Reductions of tax rates at the cantonal level are to be expected in order to preserve the activeness of Switzerland. The Swiss Federal Council has proposed particular measures to reduce the burden of the cantons: the increase of the canton’s portion of the direct federal tax revenue, the increase of partial taxation of dividends, the mandatory limitation of tax relief limited by a maximum of 70% and the increase of minimal child and educational allowances as well as the increase of partial taxation of dividends at the shareholder level.
The notional interest deduction strongly criticized in the CTR III has not been re-articulated in this bill.


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