Articles in tax law

Employee shareholders are often caught off guard by social security authorities when a distributed dividend is subject to social security contributions in whole or in part because it is reclassified as taxable income. This article outlines current practice and its limitations, arguments against reclassification, and possible future developments.

In late 2025, the OECD published an update to the OECD Model Tax Convention, which sets out in detail the conditions under which working from home can constitute a permanent establishment. The OECD introduces a new concept of the company’s deemed control over employees’ homes. Based on the legal framework and existing Federal Supreme Court case law, this article analyzes whether Swiss practice regarding the home office as a permanent establishment should be adjusted in light of this new concept and the experience gained from several years of remote work.

The EU directive on Faster and Safer Tax Relief of Excess Withholding Taxes (FASTER) was formally approved at the end of 2024. The purpose of the directive is to make the refund procedure of withholding tax in the EU more efficient for investors and more secure for tax authorities. Member States will have to transpose the directive into national legislation by 31 December 2028 and these rules will become applicable from 1 January 2030. But what are the implications for Swiss-based financial institutions (FI)?

With the publication of the new FTA VAT Info 11 on Reporting Procedures in February 2025, the scope of the reporting procedure—particularly with regard to real estate—has been redefined or clarified through changes and clarifications in practice. These changes underscore the need to carefully examine the available alternatives for every real estate transaction in order to avoid irreparable errors and minimize VAT as a cost factor.

The concept of a professional real estate dealer under real estate gains tax law is based on the same concept as that used in case law and practice regarding income taxes. The only distinction is that, for the purposes of real estate gains taxation, this concept must also be applied mutatis mutandis to legal entities. The tax implications under real estate gains tax are the opposite: While being classified as a dealer in income taxation leads to a massive tax and social security burden, the same classification under real estate gains tax grants only tax relief. It is hardly surprising that one and the same concept has developed in different directions. This article discusses the latest developments, the extent to which they differ in both areas of law, and what a publication on practical application can achieve.

The Swiss real estate market is becoming an increasingly attractive investment destination for foreign investors. This article provides an overview of the key tax considerations related to cross-border real estate transactions. In addition to a brief overview of current tax issues, the article examines in detail investment in commercial real estate and the question of whether, for property tax purposes, the entity is an operating company or a real estate company, as well as the tax treatment of a sale of shares in a Swiss real estate company under Swiss domestic law and treaty law.

Diese Ausgabe widmet sich vollständig dem Themenkomplex «Immobilien». Die vier Beiträge beleuchten zentrale Brennpunkte, die die Praxis heute prägen. Immobilien bilden ein eigenes Universum im Steuerrecht: Die Themen sind vielschichtig und kantonal geprägt. Zwischen laufender Besteuerung, Grundstückgewinnen, gesellschaftsrechtlichen Strukturen und internationaler Verflechtung zeigt sich, dass selbst vermeintlich klassische Fragestellungen neue Fragen aufwerfen. Die jüngsten Entwicklungen führen eindrücklich vor Augen, wie dynamisch die Immobilienbesteuerung geworden ist.

This article compares the tax implications of holding real estate directly as part of one’s personal assets with holding it indirectly through a real estate company. It explains the key differences in ongoing taxation—under current law as well as under the system change expected to take effect in 2028—and in the sale of real estate, illustrating these points with examples.

Real estate companies have an incentive to shift as much profit as possible from the “real estate gain” tax category into the realm of income tax. Instead of handling the purchase of the property, the development of the site, and the subsequent marketing through a single company, these functions are divided among various companies within a corporate group. This paper highlights the associated problems of profit shifting and suggests possible solutions.

In its ruling of November 26, 2024, the Tax Appeals Court of the Canton of Zurich confirmed that a taxpayer may terminate his self-employment and thereby claim taxation of liquidation gains even if he purchases a property from his former business assets, has it renovated together with another property acquired from his brother, and rents it out, since the activity associated with the two acquired properties does not constitute a continuation of self-employment but rather serves as a private investment.

In privately held corporate groups, it is not uncommon to find partnerships and other person-based legal entities—such as trusts, foundations, or private individuals linked by shareholder agreements—at the top of the structure. This article analyzes how such legal entities are to be treated under Swiss and international supplementary tax laws and to what extent the provisions of Swiss income and profit tax law influence this.

Tax authorities are increasingly automating their processes and making greater use of AI. They are also required to do so due to the obligation to act efficiently and effectively. Building on this, the authors examine what requirements the ongoing automation must meet in light of the principle of legality, the duty to audit and investigate, and the duty to provide justification, and identify areas where legislative action is needed.

Werden Deklarationspflichten verletzt –  sowohl im gemischten Veranlagungsverfahren wie auch im System der Selbstveranlagung – die zu einer (möglichen) Steuerverkürzung führen, stellt sich neben der Erhebung einer allfälligen Nachsteuer regelmässig die Frage der strafrechtlichen Verantwortlichkeit. Dabei gerät immer häufiger auch die Vertreterin oder der Vertreter der steuerpflichtigen Person ins Visier der Steuerbehörde.

Swiss criminal tax law may impose different penalties for the same offenses. This is due to legally established grounds for mitigation, which ensure that personal circumstances and individual cases can be taken into account. The aim of this article is to provide an overview of the grounds for mitigation in back-tax proceedings and to highlight current developments in practice, particularly in the Canton of Zurich.

Since complying with tax obligations in accordance with the law requires knowledge of tax law—which taxpayers often lack entirely or in part—many taxpayers seek assistance in fulfilling their filing obligations. If this results in filing errors that lead to at least a potential tax shortfall, consulting a professional does not relieve the taxpayer of their responsibility for their tax return. Conversely, the consulted professional—the tax advisor—may also come under scrutiny by the authorities responsible for prosecuting tax offenses.

Since tax evasion presupposes a breach of procedural obligations, this article examines these obligations in greater detail, particularly the taxpayer’s duty to cooperate, both in the ordinary assessment procedure and in the tax domicile procedure. Finally, the article also addresses the procedure for assessing back taxes, taking into account the latest case law of the Federal Supreme Court regarding the terms “unknown” and “new” facts and evidence.

The Federal Supreme Court rulings 6B*90/2024 and 6B*93/2024 of February 3, 2025, raise fundamental questions regarding the criminal liability of tax advisors. The focus is on the requirements for perpetration of tax evasion and incitement thereto, as well as the distinction between permissible tax advice and criminal complicity. The rulings shed light on the different roles of in-house and external advisors and their significance for practice and the application of the law.

Working from home has fundamentally changed cross-border taxation—including in the relationship between Switzerland and France. Since 2023, new rules have been in effect for French cross-border commuters that allow for greater flexibility but also place higher demands on employers and employees. This article provides a concise overview of the current tax framework and highlights key points to keep in mind.

Effective January 1, 2025: Tax claims against sole proprietorships, partnerships, corporations, and other legal entities listed in the Commercial Register must be asserted in bankruptcy proceedings. The abolition of special enforcement has far-reaching consequences for businesses, government agencies, and legal practice. This article examines the new legal situation, highlights risks—particularly regarding the enforcement of assessment notices from the FTA or provisionally assessed taxes from cantonal tax administrations—clarifies key terms such as bankruptcy and mass liabilities, and outlines what taxpayers must pay particular attention to in the future.

Not only federal, cantonal, and municipal income taxes (DBG, StHG), but also supplementary taxes (GloBE Model Regulations, MindStV) recognize the concept of subjective tax exemption for legal entities. The regulations are fundamentally identical; however, there are several practical scenarios in which supplementary taxes undermine the profit tax exemption (e.g., cantonal banks, health insurance companies, newly established companies). The author therefore sees a need for action on the part of the legislature and the tax authorities.