The proposal

The second federal law “on improving the tax framework for business activities and investments” aims to reduce taxation on distributed corporate profits, cut taxes that eat into companies' assets, and free partnerships from tax constraints.

A modern corporate tax policy must take the international environment into account without losing sight of the clearly defined goals for domestic companies. In accordance with the 1999 financial model, the Federal Council is pursuing the following goals in the area of corporate taxation: freeing companies from tax constraints, promoting growth and increasing employment through financially viable reforms. The Corporate Tax Reform II is also geared towards these objectives. It aims to improve the economic framework conditions at the federal and cantonal levels, especially for small and medium-sized enterprises (SMEs). SMEs employ more than half of all people in gainful employment in Switzerland, which corresponds to over two million jobs.

These are the main points of the reform:

• The economic double burden on profits from corporate investments such as dividends and profit shares will be alleviated by lower taxation.
• The substantial tax burden on the capital of corporations will be reduced.
• Partnerships will be exempt from tax constraints in connection with the preservation, restructuring, and transfer of the business.

A referendum has been launched against the federal law. Opponents criticize the unequal taxation of dividends and wages, fear losses in AHV contributions and tax revenues, and question the constitutionality of the bill.

Results

The proposal was accepted.

Proportion of voters: 38.6%
Yes votes: 50.5%