The Switzerland Federal Council has recently made an announcement indicating that there is an ongoing parliamentary consideration of a proposal to extend the period for carrying forward losses from 7 years to 10 years. The primary objective of this proposal is to provide support for companies that have been impacted by the COVID-19 pandemic, by allowing them more time to resume their business activities. It’s important to note that this potential change would apply to all companies, including those with permanent establishments abroad that have recognized losses in Switzerland, as well as self-employed individuals.
To ensure a smooth transition, the proposal includes transitional provisions. These provisions specify that the previous law, which had a 7-year limit on loss carryforwards, will still be applicable to losses incurred before the 2020 tax period.
This proposal is currently in a consultation phase, which is scheduled to continue until 19 October 2023. During this period, stakeholders and relevant parties are invited to provide their input and feedback on the potential measure.
