Source: http://www.swisstaxnetwork.ch/corporate-taxation---besteuerung-jur-personen/Tax-Consequences-of-Liquidation
Timestamp: 2018-09-22 07:44:53
Document Index: 641461101

Matched Legal Cases: ['Art. 736', 'Art. 58', 'Art. 24', 'Art. 69', 'Art. 28', 'Art. 28', 'Art. 55', 'Art. 20', 'Art. 20', 'Art. 18', 'Art. 58', 'Art. 24', 'Art. 69', 'Art. 28', 'Art. 5', 'Art. 15', 'Art. 13', 'Art. 18']

Liquidation / Swiss Tax Consequences - swisstaxnetwork.ch
The reasons justifying dissolution of a corporation are enumerated in Art. 736 CO. The liquidation will mostly be decided a shareholders' meeting. Liquidation involves assets liquidation, debt repayment, any final dividend to shareholders and deletion from the commercial register.
Checklist - Tax consequences of the liquidation of a corporation
Types of taxes Liquidating A-AG Shareholder, individual, Shares held as private asset (private investor) Shareholder, individual, shares held as business asset or Shareholder, legal entity not benefiting participation relief Shareholder, legal entity benefiting for participation relief
Income taxes (FITA/CCITHA) - Liquidation leads to income tax due to the realization of all gains on hidden assets (Art. 58 FITA; Art. 24 para. 1 CCITHA)
- Sale of securities by corporation possibly benefits from participation relief(Art. 69 ff. FITA; Art. 28 para. 1 und para. 1bis CCITHA)
- Holding companies which qualify for the holding privilege according to Art. 28 para. 2 CCITHA are not subject to income tax on a cantonal level
- Tax liability is continued during liquidation
- Liquidators are jointly and several liable (Art. 55 Abs. 1 FITA)
- Liquidation surpluses represent taxable income, unless repayment of existing capital contributions (share capital and qualified former capital contributions) (Art. 20 para. 1 lit. c FITA)
- Possible partial taxation (Art. 20 para. 1bis FITA)
- Difference between the liquidation proceeds and the taxable value of the shares constitutes taxable income from self-employment or taxable net income
- Possible partial taxation for individuals holding shares as business asset (Art. 18b FITA)
- Participation relief possibly reduces income taxes (amounts to the difference between liquidation proceeds and the total net profit (Art. 58 FITA; Art. 24 para. 1 CCITHA))(Art. 69 ff. FITA; Art. 28 para. 1 und para. 1bis CCITHA)
Real estate capital gains tax / Real estate transfer tax - In case of transfer of real estate located in monist cantons, possible tax on capital gains of real estate disposal and real estate transfer tax
Withholding tax (WHTA) - Distributed liquidation proceeds subject to 35% withholding tax; repayment of share capital and reserves from capital contribution not subject(Art. 5 para. 1bis WHTA)
- Liquidators are jointly and severalliable (Art. 15 para. 1 lit. a WHTA) - Check recovery of withholding tax - Check recovery of withholding tax or withholding tax reporting procedure - Check recovery of withholding tax or reporting procedure
Stamp tax (STA) (Stamp issuance tax/ Stamp transfer tax) - Stamp transfer tax: In case of sale of taxable securities (Art. 13 f. STA)
Value added tax (VAT) - In case of corporation subject to VAT, taxable transaction in principleunless exception or exemption (Art. 18, 21 und 23 VAT Act)