At its meeting on 8 March 2019, the Federal Council decided that the Federal Act on the calculation of the participation deduction for systemically important banks (see also our contribution of 22 September 2018) will enter into force retroactively as of 1 January 2019.
The law corrects the calculation of the participation deduction so that the profit tax burden of the group parent of a systemically important bank remains unchanged when it issues too-big-to-fail instruments.
The decision of the Federal Council is subject to the referendum, which runs until 8 April 2019.
The press release is available here.
