Switzerland: Prior tax year losses allowed against real estate gains (Federal Supreme Court decision)

Federal Supreme Court judgment dismissing the tax authority’s appeal of a lower court’s decision

Allowed against real estate gains (Federal Supreme Court decision)

The Federal Supreme Court issued a judgment (9C_628/2022, 31 January 2023) dismissing the tax authority’s appeal of a lower court’s decision holding that a taxpayer was entitled to offset real estate gains with losses from prior tax years.


The taxpayer was a real estate developer who sold condominiums in Zurich in 2013. The taxpayer claimed loss carryforwards from the years 2007, 2010 and 2012 on its real estate gains tax declarations for 2013.

The tax authority did not allow the offsetting of losses, but the administrative court approved the taxpayer’s appeal of the tax authority’s determination.

The Federal Supreme Court has now dismissed the tax authority’s subsequent appeal of the administrative court’s decision, general confirming the ability to offset losses across all tax types in inter-cantonal situations, at least for tax years prior to 2019. It remains unclear, however, whether such losses will be allowed in purely intra-cantonal situations.

Read a May 2023 report (German) prepared by the KPMG member firm in Switzerland


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