The Patent Box
Interestingly, the TP17 includes some measures concerning Patents and Intellectual Property Rights – the so-called "patent box". The patent box, which has also been the object of the consultation, provides that:
Profits from patents and similar rights will be kept separated from other profits and taxed at a lower level, following the OECD's "modified nexus" system. The relief may not exceed 90%. This measure is mandatory.
Additional voluntary R&D deductions of up to 50% of domestic expenditures may be established.
The tax relief based on the patent box and additional deductions for R&D should not exceed the 70% of the taxable profit.Why is the reform important
The TP17 would eliminate special corporate tax regimes by introducing measures like the Patent Box and the R&D tax deduction. The main purpose is to substantially lower corporate taxes, especially in the wake of the recent US Tax reform, while making sure that Switzerland remains a competitive environment for multinational companies and local businesses.Source
Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.