March 2019 / Switzerland

March 8 2019

New tax rule for systemically important banks enters into force

On 8 March 2019, the Swiss Federal Council decided that The Federal Act on the Calculation of the Participation Deduction for Systemically Important Banks will enter into force retroactively with effect from 1 January 2019. The law corrects the calculation of the participation deduction so that the profit tax burden of the group parent company of a systemically important bank remains unchanged if it issues too-big-to-fail instruments (e.g. bail-in bonds).