Latest tax & legal developments for Switzerland
Sharing knowledge, bringing you the newest developments in our field and showing you how we work. In business, we all need easy access to relevant information about tax and legal news. We provide regular, pragmatic and straight-to-the-point updates on recent developments.
Impartiality of Arbitrators: How far does the parties’ obligation to investigate go?
In a recent decision, the Swiss Federal Supreme Court (SFSC) addressed the standard applicable to the parties’ obligation to investigate potential conflicts of interest of arbitrators. The SFSC ruled that the parties can be expected to undertake certain inquiries, in particular to conduct online searches, but they are not obliged to perform a systematic and in-depth analysis of all sources relating to an arbitrator.
UK grants equivalence to Switzerland's stock exchanges
On 3 February 2021, the UK parliament granted equivalence to Switzerland's stock exchanges. In turn, measures taken by Switzerland to protect its trading venues will cease to apply to the UK market. Again an important step towards a closer cooperation between Switzerland and the UK.
A Practical Guide to Virtual Depositions in Switzerland
The Covid-19 crisis and shelter-in-place orders have forced the legal profession to adapt to new circumstances when it comes to evidence gathering and witness depositions in aid of foreign proceedings. Depositions are now taken virtually which could soon be the norm rather than the exception. This article describes the process of taking oral testimony of a Swiss witness by remote means and highlights possible pitfalls from a Swiss law perspective.
Leaders League – Best Law Firm Rankings 2021
We are pleased to announce that Loyens & Loeff Switzerland has received excellent rankings of Leaders League in 2021.
Revision of Swiss Arbitration Law effective as of January 2021
On 1 January 2021, the revised Chapter 12 of the Swiss Private International Law Act (PILA), which governs the procedural rules applicable to international arbitration, entered into force. The revision incorporated key elements of the Swiss Federal Supreme Court’s (SFSC) jurisprudence on international arbitration into the PILA, clarifying existing legal uncertainties and replacing references to other laws with stand-alone rules to create a user-friendly, comprehensive set of procedural rules.
Luxembourg tax authorities issue circular on interest deduction limitation rule
On 8 January 2021, the Luxembourg tax authorities published circular LIR 168bis/1 on the interpretation of the interest deduction limitation rule, which is applicable as from tax years starting on or after 1 January 2019. The long-awaited guidance notably clarifies the notion of borrowing costs and the grandfathering rule for loans predating 17 June 2016. Taxpayers should review their positions taken in respect of the application of the interest deduction limitation rule in light of this new guidance.
EU Tax Alert - December 2020
The EU tax alert will inform you of recent developments in EU tax law.
Update on revision of Swiss inheritance law – adoption of reduction of compulsory portion
This article provides a short update on the revision of Swiss inheritance law and the innovations adopted of 18 December 2020 in this regard.
Comments on the OECD’s Pillar 1 and Pillar 2 reports
Loyens & Loeff participated in the OECD public consultation on the updated Pillar One and Pillar Two proposals that seek to change the taxation of the “digital economy” and introduce global minimum taxation for large MNE groups. Aside from addressing technical issues, we stressed the need for simplification, the importance of avoidance of double taxation and raised some more fundamental design concerns.
The new paternity leave and allowance
Current Swiss law does not provide for paternity leave. Today, fathers of new-born children can claim paternity leave of at least one or two days within the framework of "normal days off" (art. 329 para. 3 CO). The introduction of paternity leave compensated through the income replacement scheme (EO) was approved in a referendum on 27 September 2020. The provisions on the two-week paternity leave and allowance will enter into force on 1 January 2021. Since the requirements for the entitlement to paternity leave and allowance differ, an employee may be entitled to the leave but not to paternity allowance.
FOB & PW Update – South-east part of Switzerland
This update contains general information with regard to various topics that may be of interest for Swiss and foreign high-net-worth individuals and/or family owned businesses.
Loyens & Loeff appoints 7 new partners
Amsterdam, the Netherlands, 14 December 2020 – Loyens & Loeff has invited Michel van Agt, Charlotte Kiès, Pauline Leegwater, Peter Moons, Jérôme Mullmaier, Ehsan Shirzadi and Fabian Sutter to join the firm as partners with effect from 1 January 2021.