Content area
Abstract
In a recent referendum, citizens of the Swiss canton of Vaud accepted a decrease of the tax burden for corporations in line with the latest federal corporate tax reform, as well as other measures for individual residents. Partial taxation of dividends: dividend distributions coming from qualified participations (of at least 10% of shareholder's equity of the company) are taxed to the extent of 70% for private wealth and of 60% for commercial assets. Extension of participation relief: the threshold is lowered to a participation of at least 10% of shareholder's equity or of a market value of at least CHF 1 million ($800,000). Among other measures, a tax shield caps at 60% of net revenue the total cantonal and municipal income and wealth tax burden for individual residents. The tax shield is designed to alleviate the tax burden for the highest income and wealth brackets.