The Swiss Federal Council has decided to implement a new federal law
Governing the tax treatment of not-for-profit organizations profits from early 2018.
The law was passed on March 2015, It provides for an exemption for taxable profits
of up to CHF 20’000.00 ( USD 20’470.00), for legal persons whose income and capital is
exclusively used for projects for social good. Profits above this level would be subject to tax.
The exemption is designed to keep the administrative burden on the cantons as law as
Possible, similar provisions relating to direct cantonal profit taxes will enter into force in
Early 2016, for which the cantons will be able to set their own allowances, The cantons will
Then have two years to comply with the new federal regulation.
The reform is not expected to have a substantial impact on federal tax revenue.
Should you require any further clarifications, please do not hesitate to contact us at:
Cardwell Advisory Desk.