The Fondation pour l’attractivité de Genève (FLAG) is pleased to share their second episode of their podcast deciphering, this time, ́ , featuring two experts in the field: Sarah Busca Bonvin and Xavier Oberson.
In this episode, they discuss the main principles of taxation, with a focus on the major challenges faced by entrepreneurs in Geneva, where the top tax rate is the highest in Switzerland on both income and wealth.
Unlike other cantons, which have already introduced tax breaks for the taxation of work tools, Geneva has none, which, combined with high tax rates, has a major impact on entrepreneurs’ tax bills.
The work tool targets shares held by an entrepreneur in a company in which he works and of which he holds at least 10% of the share capital. The current valuation method, based on theoretical criteria, reflects neither market reality nor the personal links between the entrepreneur and his company. This disadvantageous situation in inter-cantonal comparison often forces them to dip into their company’s profits to pay this tax, instead of reinvesting, innovating or creating new jobs.
A reform is now on the table, and the population will be asked to vote on it on September 22. It aims to correct these imbalances, bringing Geneva into line with other cantons in order to preserve its long-term economic competitiveness.
Find out more about our guests :
𝐒𝐚𝐫𝐚𝐡 𝐁𝐮𝐬𝐜𝐚 𝐁𝐨𝐧𝐯𝐢𝐧, is a qualified tax expert and specialist lawyer, co-head of the tax department at CMS in Geneva. She teaches in the LLM Tax program at the University of Geneva and in the tax expert training program.
𝐗𝐚𝐯𝐢𝐞𝐫 𝐎𝐛𝐞𝐫𝐬𝐨𝐧, is Professor of Tax Law at the University of Geneva, author of numerous works on Swiss and international tax law, and partner at Oberson Abels.e (revLTVA) will come into force on January 1, 2025. Among the changes this will bring are the introduction of an annual statement of account and the possibility for the FTA to waive the appointment of a fiscal representative (in the case of VAT registration of a foreign company).
