The Swiss tax system in force provides certain tax privileges at federal and cantonal level, which are internationally considered harmful tax practices. With this background, the Swiss government is currently adopting its tax legislation in order to become compliant with internationally accepted standards. Main focus is on abolishing the status companies (such as domiciled companies, holding companies and principal structures) on the one hand, but maintaining a competitive environment for international business on the other.
At the end of September 2018, the Swiss parliament passed the bill in a final vote. As the bill is subject to a public referendum, it is expected that the final decision will be taken by a public vote in spring 2019. Thus it is uncertain whether the law will enter into force in 2020. Nevertheless, a summary of the most important measures – besides others – is given below: