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Switzerland: Landmark Federal Supreme Court Decision on Disposal of Treasury Shares
The Federal Supreme Court concluded that at reissue of treasury shares, no taxable capital gain arises.
There is no legal basis for a correction in the corporate income tax law. Accordingly, it is not permitted for corporate income tax purposes to deviate from the profit which was determined in accordance with commercial law. This ruling represents an important landmark decision with signaling effect.
In this article, ADB Altorfer Duss & Beilstein covers the landmark ruling of 6 June 2024, in which the Federal Supreme Court determined that reissuing treasury shares does not create a taxable capital gain, aligning the tax treatment with commercial law. This decision marks a significant shift in how treasury shares are handled for corporate income tax purposes.
For more information, please contact:
Fabian Duss Partner
fabian.duss@adb.ch
ADB Altorfer Duss & Beilstein AG, Switzerland
Michael Felber
Dr. rer. oec.
michael.felber@adb.ch
ADB Altorfer Duss & Beilstein AG, Switzerland
