Request for a tax ruling

The tax authority may:

• Validate the tax ruling: if the tax treatment of the transaction is carried out in the same way as presented in the tax ruling, the tax authority cannot call that tax treatment into question. The tax ruling is protected by the principle of good faith.
• Validate with reservations: The authority validates the project on condition that certain highlighted points are complied with.
• Refuse the tax ruling: if the tax authority considers that the tax treatment of the project is not correct, it may decide to refuse the tax ruling request. In that case, the taxpayer can reassess the tax consequences of the project and submit it again to the tax authority.

Tax ruling: examples

A tax ruling request can be submitted for:

• Obtaining holding company tax status
• Obtaining auxiliary company tax status
• Paying dividends outside Switzerland
• …

Tax ruling: how it works

The legal entity or individual submits the facts relating to their specific situation to the relevant tax authority before the project is implemented, asking it to validate the treatment set out. This request is made by letter.

Depending on the tax authority’s response, the project is carried out and taxed as presented in the tax ruling, or adjustments are made at the authority’s request.

Some projects are complex and give rise to complex tax calculations. We advise you to approach our team of tax lawyers, who will support you, propose an optimal solution and liaise with the tax authority to see your project through in strict compliance with the tax rules in force.