Switzerland: Tonnage tax regime approved by National Council
Draft legislation on tonnage tax approved by National Council
Draft legislation on tonnage tax approved by National Council
The National Council on 13 December 2022 approved (99 votes in favor, 85 against and 3 abstentions) draft legislation on the tonnage tax.
The tonnage tax regime would be intended to strengthen the Swiss shipping sector and would introduce an alternative and optional tax regime for the international shipping industry in a manner similar to regimes in other countries including Germany, France, Cyprus, and the United Kingdom.
The tonnage tax regime would replace income tax at the communal, cantonal and direct federal levels, and the taxable basis of a company would be determined based on net tonnage of ships (freight capacity).
Certain proposed amendments to the tonnage tax regime were not approved by the National Council:
- Proposed use of total turnover instead of net income to qualify income from accessory activities for the tonnage tax
- Proposed change to the scope of activities/operations that can qualify for the tonnage tax from “construction and maintenance of offshore structures” to “provision of marine services to the offshore business”
Next steps
The draft legislation will now be considered by the Council of States, which is expected to happen in February 2023.
Read a January 2023 report prepared by the KPMG member firm in Switzerland
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.