Overview of tax law decisions by the Swiss Federal Administrative Court published between July 6 and July 12, 2026:
- Judgment of June 30, 2026 (A-1366/2026): Withholding Tax; Refund; Permanent Establishment; In the present case, the Federal Administrative Court had to determine whether a company resident in Liechtenstein was entitled to a refund of withholding tax pursuant to Art. 24(3) of the Withholding Tax Act (VStG). The company’s status as a foreign enterprise was undisputed. The issue in dispute, however, was whether the branch office registered in Switzerland should be classified as a domestic permanent establishment and whether the income subject to withholding tax should be attributed to the business assets of that permanent establishment. The Federal Administrative Court initially ruled that a domestic permanent establishment did not exist, as it could not be proven that the branch had carried out its own operational or business activities during the relevant period. Furthermore, the court concluded that the assets subject to withholding tax could not be attributed to the business assets of the Swiss branch. The taxpayer was unable to prove that the assets in question served the branch’s business activities or that the branch had contributed significantly to the generation of the corresponding income. In the absence of a domestic permanent establishment and given that the assets subject to withholding tax could not be attributed to its business assets, the Federal Administrative Court (BVGer) deemed the requirements of Art. 24(3) of the Withholding Tax Act (VStG) not to have been met. The taxpayer’s appeal was dismissed.
Decisions are listed chronologically by publication date.
