Switzerland: Extension of tax loss carry-forward period
Extended from seven to 10 years
The 100‑day referendum period relating to the Federal Act on the extension of loss carry‑forward expired on April 17, 2026, without being exercised. The Act had been adopted by Parliament on December 19, 2025, and published in the Federal Gazette on January 7, 2026, and extended the tax loss carryforward period from seven to 10 years.
The extended 10‑year loss carryforward period applies to losses incurred from the 2020 tax period onwards. Losses incurred in tax periods prior to 2020 remain subject to the existing seven‑year carryforward limitation.
The measure applies to direct federal tax as well as cantonal and communal taxes and applies to both self-employed individuals and legal entities. Finally, it also covers losses incurred by foreign permanent establishments of Swiss companies.
The Federal Council is expected to formally confirm the effective date as of January 1, 2028.
Read a May 2026 report prepared by KPMG’s EU Tax Centre