In light of the rejection of Switzerland’s CTR III, companies face ongoing uncertainty when assessing their current or planned Swiss operational setups. While it remains unclear what the next proposal for the CTR will look like, it is likely that the revision will take at least two years to be adopted by parliament or – in case of a referendum – put to vote again. However, companies may use this current uncertainty as an opportunity to gain insight and ground for assessing and aligning their business models to deal with the increased requirements of tomorrow.
Companies are left with few options. Either they will follow a “wait-and-see” approach until a new proposal is drafted or they will use the time to rethink their business model from a tax and operational perspective.
In a world with a trend towards value-focused tax and business models today’s business decisions need to build on the very basis of the company’s value creation. KPMG’s Value Chain Analysis (VCA) allows companies to transform the current uncertainty into timely adaptability by providing a clear view on the company’s value chain. While it is impossible to tell what the future holds, companies can already obtain a good understanding today on the profit attributable to Switzerland under different scenarios. They can further identify and analyze any potential levers to influence its profit and model the tax impact as well as assess other operational considerations including talent pools or labor costs.
We are convinced that this temporary uncertainty should be recognized as a chance to assess business models and prepare for future developments.