Here in Switzerland, we have the considerable advantage of excellent relations between the tax authorities and taxpayers or their agents. For this reason, tax rulings or, more specifically, advance tax rulings play an important role in our country.
In order to obtain a tax ruling, the taxpayer in question must submit details of the factual situation to the relevant tax authority, usually by means of a written application inviting them to agree to the tax consequences potentially involved. This application must be submitted before the respective transaction takes place so that the tax authority can give its decision accordingly. This will involve an informal notice that is binding upon the authorities, subject to certain conditions.Cases in which such applications for approval are used include the following :
- Applications for the recognition of holding company status;
- Applications for the recognition of mixed or base company status;
- Applications for the recognition of the rules on transfer pricing when setting up an international group;
- Application for the recognition of business expenses abroad;
- Application for a tax ruling on the payment of dividends abroad (reimbursement of withholding tax or a declaration issued in place of withholding tax);
- Application for a tax ruling to obtain lump-sum taxation status.
THEVOZ Attorneys has amassed considerable expertise in negotiating tax rulings and representing its clients in their dealings with the tax authorities.