Insights

AML/KYC background checks on clients and prospects

Registration for VAT and submission of the VAT returns via the e-portal of the Federal Tax Administration will become mandatory from 1 January 2024. In addition, a one-year transition period will be granted.

Swiss voters approve OECD minimum tax/Pillar Two concept to embed into fiscal regulations.

The new Data Protection Act will come into force on 1 September 2023 – the deadline is approaching. What should financial service providers do in the next 3 months to drive the implementation forward? What are the biggest challenges?

In order to support you even better in dealing with unstructured data, our experts at Grant Thornton now work with the software “RelativityOne” from Relativity GmbH, Frankfurt am Main “Relativity”. With this, we at Grant Thornton are expanding our global offering in the field of forensic services. The cloud-based SaaS product enables us to better support you in multinational litigation, internal investigations and regulatory compliance.

According to Swiss statutory regulations, contributions, including paid-in surplus, effectuated by direct shareholders, that are openly disclosed and accounted for in the financials of the receiving corporation or cooperative are considered as reserves from capital contributions. The repayment of such capital contributions to current or future shareholders is treated the same way as the repayment of nominal share capital and as such is neither subject to income nor withholding tax.

A new bill is to be submitted for consultation this summer, which includes the introduction of a central register of beneficial owners of legal entities in Switzerland.

In the April issue of B2B Magazine, Fabian Schmid and Anael Rosalen shed light on the special features of de minimis portfolio managers and their differences from portfolio managers of collective assets.

After the licence is before the audit: Following the granting of the licence, asset managers and trustees must put the newly developed risk management and compliance framework into practice, which is very important for a smooth audit later on. A key challenge is the documentation requirements, because in the future asset managers must, for example, keep a "watch list" of any insider information that may exist and a "restricted list" of any prohibitions or restrictions on trading in certain financial instruments. In addition, asset managers and trustees will now be prudentially monitored by supervisory organisations.

Are you looking for a suitable partner for your compliance education and training? You already have an established compliance training concept, but would like to train your employees on selected regulatory topics in cooperation with proven experts? We offer you the planning, organisation and implementation of individual training events tailored to your company for yourself and your employees.

Confirmation of the practice of the Federal Tax Administration in the area of withholding tax in the case of a secondary adjustment.

Hundreds of independent asset managers or trustees have recently received or will soon receive a licence from FINMA. One of the most important associated changes is that these institutions must comply with comprehensive reporting or licensing requirements before implementing important entrepreneurial decisions such as the replacement of member of the board of directors or executive board, the change of organisation or the transfer of a significant shareholding. Initial experience shows that there are numerous challenges associated with the new obligations. In this article, the most important elements of the notification and authorisation obligation as well as sticking points for implementation in practice are outlined.

The new Federal Act on Data Protection (nFADP) and the corresponding ordinance will come into force in Switzerland on 1 September 2023. All companies that process personal data which affects natural persons in Switzerland fall within the scope of the law and are equally affected. Regardless of the industry in which you operate and regardless of the size of your company, you must comply with the new legal requirements.

For the tax assessment of advances and loans in Swiss francs and in foreign currencies, the Swiss Federal Tax Administration (FTA) publishes the recognised interest rates annually. The interest rates were massively increased in 2023 compared to previous years.

If a profit is made through the sale of a property in Liechtenstein, the seller must pay property gains tax (Grundstücksgewinnsteuer). The tax is levied on the difference between the initial investment costs and the proceeds of the sale. The investment costs include not only the purchase price but also, for example, value-enhancing expenses. It is not always clear whether a measure is value-enhancing or merely value-maintaining. Christian Reichert and Michael Heeb have summarised the topic in an article in the Wirtschaftregional of 10 February 2023, explaining how the real estate gain is calculated, which special cases exist and why you should already keep the tax in mind when acquiring a property.

With Revenue Procedure 2022-43, the US tax authority IRS published the new Qualified Intermediary (QI) Agreement in December 2022. All Qualified Intermediaries – i.e. the vast majority of banks and securities firms – have until 1 May 2023 to convert their existing QI Agreement into the new version on the electronic IRS portal.