On November 27, 2024, the Federal Council adopted the dispatch on extending loss offsetting from seven to ten years. In doing so, it is fulfilling a motion referred by Parliament, which was justified by the difficult economic situation of many companies due to the COVID pandemic (see our article from July 1, 2023).
In September 2024, the Federal Council decided that the majority of the federal budget should be adjusted on the expenditure side. New proposals that entail reduced revenue or additional expenditure should therefore be examined for their priority and, if implemented, counter-financed. Against this background, the Federal Council has decided not to request Parliament's approval of the bill. However, the issue of loss offsetting and its significance for the attractiveness of Switzerland as a business location should be included in the report on postulate 23.3752 "Remain attractive, secure finances. Switzerland needs a long-term tax and location strategy".
In order for the losses in the coronavirus years (from the 2020 tax year) to take effect, the amendments to the DBG and StHG would have to come into force on January 1, 2028.
