November 2024 / Switzerland

The Federal Council has discussed a proposal to extend the period in which companies can offset tax losses from 7 to 10 years. The measure was designed to support businesses affected by the COVID-19 crisis. Despite being backed by Parliament and enjoying broad political support, the government has decided not to move forward with it. The decision stems from concerns about public finances, which are currently under significant strain. While the extension would benefit certain companies, it would also result in reduced tax revenues for the Confederation, Cantons, and Municipalities. The Federal Council believes that more pressing priorities need to be addressed and prefers to consider this issue within a broader fiscal strategy rather than making immediate changes.