On 28 June 2003, the Swiss Federal Council opened the consultation process on legal amendments providing for an extended loss carry forward period.
The Swiss parliament passed motion 21.3001 in June 2022 extending the loss carry forward period from 7 years to 10 years in the Federal Direct Tax Act (DBG) and the Federal Act on the Harmonization of Direct Taxes of the Cantons and Municipalities (StHG). With the measure, the parliament aims to facilitate the recovery of companies affected by the Covid-19 pandemic, but it should also benefit all companies and should apply to losses from 2020 onwards. For companies that suffered severely during the Covid-19 pandemic, the extended loss offset may facilitate the reconstruction of the business under certain circumstances. The measure is also likely to benefit start-ups that need a longer build-up period before they can generate profits.
The consultation period runs until 19 October 2023.