Anti Tax Avoidance Directive (ATAD)
The EU Anti Tax Avoidance Directive (ATAD) underpins the EU Commission's Action Plan to fight corporate tax avoidance. In essence, the ATAD obliges EU Member States to introduce minimum, legally binding anti-corporate tax avoidance rules. We help you to design a strategy that suits your business.
ATAD will not only have a substantial impact on the corporate tax position of EU businesses. Besides a broader corporate tax profit base in EU countries, ATAD will also impact certain Swiss business operations of multinational enterprises. In particular Swiss IP, intra group financing and principal / trading operations should be reviewed in the light of ATAD. Diverging implementation of ATAD in various EU countries will create uncertainties in the application of these new anti-abuse rules.
In brief, the ATAD lays down the following de minimis rules against corporate taxation avoidance:
- Interest deduction limitation to in principle 30% of EBITDA of a company;
- A general anti-abuse rule (GAAR);
- Controlled foreign company (CFC) legislation applicable to both EU and third countries;
- Anti-hybrid mismatch rules applicable to both EU and third countries;
Most ATAD rules must be implemented as per 1 January 2020.
Our ATAD Services
We believe that the devil will be in the implementation details. ATAD is likely to create significant uncertainty on EU cross border corporate taxation. We keep a close look at how various EU Member States are implementing ATAD and analyse consequences for Swiss business. Our team can help you to develop an initial inventory of the likely impact of ATAD on your group companies in the main EU Member States.
Our ATAD Team
Our ATAD team consists of a mix of Swiss corporate tax lawyers and EU corporate tax lawyers not only disposing of all necessary expertise and experience, but also of the helicopter view to assess ATAD in the context of a Swiss business. We can assist in designing a tax strategy to mitigate the potential adverse tax consequences of ATAD to your business in the EU, including the necessary modifications to your group structure, intra group finance operations, IP structures, etc
BeatBaumgartnerPartner Attorney at law, Swiss certified tax expert
Beat Baumgartner, attorney at law and Swiss certified tax expert, is a partner in our Zurich office. He focuses on Swiss and international taxation, M&A, financing and capital market transactions.T: +41 43 434 67 10 M: +41 79 930 63 52 E: firstname.lastname@example.org
FabianSutterAssociate Attorney at law, Swiss certified tax expert
Fabian Sutter, attorney at law and Swiss certified tax expert, is an associate in our Zurich office. He focusses on Swiss and international taxation, in particular transfer pricing group and investment structures, M&A, financing and capital market transactions, private equity, venture capital and structured financial instruments.T: +41 43 434 67 14 M: +41 79 398 76 39 E: email@example.com
RebeccaKühneAssociate Swiss certified tax expert
Rebecca Kühne, Swiss certified tax expert, is an associate in our Zurich office. She also focuses on Swiss VAT matters and supports clients in the context of non-contentious procedures.T: +41 43 434 67 34 M: +41 79 814 06 19 E: firstname.lastname@example.org
Georges FrickAssociate Attorney at law, Tax adviser
Georges Frick, attorney at law and tax adviser, is an associate in our Zurich office. He focusses on Swiss and international taxation, particularly for (ultra) high net worth individuals, executives and entrepreneurs, and family offices.T: +41 43 434 67 12 M: +41 79 535 50 76 E: email@example.com
AnaïsNäscherAssociate Attorney at law, Tax adviser
Anaïs Näscher, attorney at law and tax adviser, is an associate of our Zurich office. She focuses on Swiss and international taxation, in particular automatic and spontaneous exchange of information as well as country-by-country reporting (CbCR).T: +41 43 434 67 20 M: +41 79 596 26 27 E: firstname.lastname@example.org
KatrinSpeckAssociate Attorney at law, Tax adviser
Katrin Speck, attorney at law and tax adviser, is an associate in our Zurich office. She focusses on Swiss and international taxation, particularly tax-efficient group and investment structures, M&A, capital market transactions and structured financial instruments.T: +41 43 434 67 22 M: +41 79 533 00 38 E: email@example.com