The Swiss government recently published its reply to the outcome of the country’s popular referendum on Corporate Tax Reform III.

The outcome of Switzerland’s popular referendum on 12 February 2017 required the Federal Council to start working on the revised proposal for Corporate Tax Reform III (CTR III), taking into account the discussions leading up to the referendum.


  • The draft is subject to public consultation which will end on 6 December 2017
  • It is then up to the Federal Council to submit the (revised) Tax Proposal 17 to Parliament, this is expected in the course of spring 2018
  • Entry into force will not be before the year 2020.

It should be noted that an additional popular referendum may be held before then.

What is noteworthy in Tax Proposal 17?

As expected, the notional interest deduction included in the previous version of CTR III has been removed. And the limit for maximum relief is set at 70%, down from 80%. This refers to the patent box, the R&D super deduction and step-up. There is also an increase in the minimum family allowance, to CHF 30.

Other measures are as outlined in our previous update: Swiss parliament agrees on CTR III.