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An overview by Tax Partner AG, Taxand Switzerland
The Swiss Federal Council has recently proposed extending the loss carryforward period from seven to ten years to reduce over-taxation and provide companies with more time to offset losses against profits. The change would aim to benefit start-ups and recovering businesses, allowing for greater investment and growth.
While the proposal received broad support during consultations, two-thirds of the cantons oppose it, citing existing tax measures for struggling companies and potential revenue losses for governments. Despite supporting the concept, the Federal Council has not recommended parliamentary approval due to the federal government’s financial challenges. Many European countries already offer unlimited loss carryforward with certain restrictions.
Stephanie Eichenberger and Marco Vitali from our Swiss member firm Tax Partner AG have analysed this proposal in more detail here.
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