Our latest research and insights: Regulation

OECD Financial Transactions Transfer Pricing Discussion Draft, Swiss Market Observations

OECD Financial Transactions Transfer Pricing Discussion Draft, Swiss Market Observations

Earlier this week the OECD released a non-consensus discussion draft (the Draft) on the transfer pricing aspects of loans, cash pooling, guarantees, hedging transactions and captive insurance structures. This blog provides our initial reactions to the first three of these areas.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Enough is enough: why companies are streamlining their financial statements

Enough is enough: why companies are streamlining their financial statements

Streamlined financial reporting is the right idea at the right time. With concerns of non-compliance prompting companies to include more and more information, readers are finding it harder and harder to find what they need and get a clear picture of companies’ performance.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
EU: CJEU issues positive decision for foreign investment funds

EU: CJEU issues positive decision for foreign investment funds

On 21 June 2018, the Court of Justice of the European Union (CJEU) issued its judgment in Fidelity Funds (C-480/16). The underlying question of the case was whether it is in accordance with the free movement of capital that non-resident investment funds are subject to withholding tax on dividends received from their Danish portfolio investments while resident investment funds are exempted from withholding tax on such dividend payments.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Liechtenstein signs Double Taxation Agreement with Jersey

Liechtenstein signs Double Taxation Agreement with Jersey

On 8 June 2018 the Government of the Principality of Liechtenstein issued a press release stating that Liechtenstein has signed a Double Taxation Agreement (DTA) with Jersey. The DTA between Liechtenstein and Jersey shall in particular grant treaty access to asset structures, investment funds, pension funds and charitable organisations.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
What happens when the taxman gets superpowers?

What happens when the taxman gets superpowers?

Digitalisation meets tax authority: in a new white paper we explain why the corporate world should be preparing now for the imminent digitalisation of tax authorities. Companies will have to make extra efforts to get their tax capabilities quickly on the same data-driven level at which the authorities will be operating soon.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
New updates on the safe-keeping duties for depositaries of Alternative Investment Funds

New updates on the safe-keeping duties for depositaries of Alternative Investment Funds

The European Commission has published a draft delegated regulation proposing to amend the Delegated Regulation (EU) No 231/2013 to the Alternative Investment Fund Managers Directive (AIFMD) as regards safe-keeping duties of depositaries for Alternative Investment Funds (AIFs). The newly proposed obligations would address depositaries and custodians further clarifying on their duties and ensuring harmonised protection of their clients' assets at EU level.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
FinSA and FinIA: Differences resolved between the National Council and the Council of States

FinSA and FinIA: Differences resolved between the National Council and the Council of States

On 12 June 2018, the National Council resolved the last differences on the Financial Services Act (FinSA) and the Financial Institutions Act (FinIA). Thus, the FinSA and the FinIA are ready for the final votes, which will take place on Friday, 15 June 2018.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Get up to Speed on the EEA Agreement Amendment

Get up to Speed on the EEA Agreement Amendment

On 31 May 2018 the EEA Joint Committee reached a decision without reservation regarding the implementation of Solvency II Level 2 and EMIR Level 2 frameworks. Thus, as of 1 June 2018, the EMIR and Solvency II Level 2 delegated acts are applicable to Liechtenstein, Norway and Island.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Comparison of Tax Proposal 17 measures between Federal Council dispatch and Council of States

Comparison of Tax Proposal 17 measures between Federal Council dispatch and Council of States

On 7 June 2018, the Council of States discussed details about the Tax Proposal 17 measures, confirming the proposed changes of the WAK-S. Recently, the WAK-S had unanimously agreed on an overall concept which differs in several points from the dispatch on the draft law bill published by the Federal Council on 21 March 2018.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
CJEU judgment: Transactions not concluded at arm's length may be in line with EU law

CJEU judgment: Transactions not concluded at arm's length may be in line with EU law

On 31 May 2018, the Court of Justice of the European Union (CJEU) issued its judgment in Hornbach-Baumarkt (C-382/16). The case refers to German transfer pricing rules applying to transactions with foreign related parties and which do not provide the possibility for taxpayers to prove the existence of commercial reasons in case they conclude transactions not at arm's length terms.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Is the time right for a 1e plan for your Swiss higher earners?

Is the time right for a 1e plan for your Swiss higher earners?

While 2017 was a good year for pension funds, trends show that pension outcomes are falling: Investing the same amount of money today in a pension plan is likely to lead to a lower outcome at retirement than in the past. At the same time, employer risk is increasing as interest rates remain low. Some employers see 1e pension plans as part of the solution. What is the latest on this?

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
How can Swiss companies turn into digital operations champions?

How can Swiss companies turn into digital operations champions?

Digital transformation is the most critical challenge for industrial companies worldwide. PwC’s new study “How to Be a Digital Operations Champion – Global Industry 4.0 Study 2018” shows that as far as Swiss companies are concerned, they have not quite exploited their full potential yet.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Switzerland introduces the clearing obligation for certain derivatives for FC+ and NFC+

Switzerland introduces the clearing obligation for certain derivatives for FC+ and NFC+

The Swiss Financial Market Supervisory Authority FINMA has recently announced that it will introduce the clearing obligation, meaning to clear certain derivatives over central counterparties, under the Swiss Financial Market Infrastructure Act (FMIA) that are traded by counterparties having the status of either an FC+, meaning large Financial Counterparty, or an NFC+, meaning a large Non-Financial Counterparty.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Klare Positionierung zahlt sich aus

Klare Positionierung zahlt sich aus

2017 verzeichnet die Schweiz einen markanten Anstieg bei den Übernachtungen. Der Trend hält auch Anfang 2018 an. Erholung ist dennoch nicht in Sicht, die Lage bleibt angespannt. Die Veränderungen im Immobilienmarkt und an den Finanzmärkten ebnen neue Märkte und Perspektiven – für Investoren und für Hotelbetreiber.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Initial coin offerings (ICOs) in Liechtenstein

An initial coin offering (ICO) or a token sale is when a company sells a predefined number of digital tokens to the public in a limited period of time. The ICO market has grown very rapidly in recent months and has been a new avenue for blockchain-based start-ups and projects to get the funding needed to launch their projects.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

FinTech Action Plan – European Commission launches measures for a more competitive and innovative financial marketplace

For many financial services companies, financial technology (short “FinTech”) and technological innovation in general offer tremendous opportunities in terms of access to finance, operational efficiency, cost savings and competition. On March 8th 2018 the European Commission presented an action plan with a total of 23 measures to make better use of the opportunities offered by technological innovations in the financial services sector. The EU wants to become a global hub for FinTech in the future.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Umsatzoptimierung in guten Zeiten – dank klarer Positionierung und Standardisierung

Umsatzoptimierung in guten Zeiten – dank klarer Positionierung und Standardisierung

Die Schweizer Hotellerie kann auf ein positives Jahr 2017 zurükschauen. Gemäss Bundesamt für Statistik kletterten die Logiernächte gesamthaft auf 37.4 Millionen und befinden sich fast auf dem Niveau der Rekordjahre 1990 und 2008. Dennoch hat das Wachstum der Logiernächte nicht zu einer höheren Auslastung geführt, da sich parallel auch das Angebot vergrössert hat (siehe PwC European Cities Forecast 2018/2019).

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Lodging & Tourism als Branchenbericht

Lodging & Tourism als Branchenbericht

Die Schweiz konnte in den vergangenen Jahren trotz starken Frankens ihre Reputation als Topdestination halten. Wie lange noch? Um den hohen Erwartungen der Gäste gerecht zu werden, müssen Touristiker viel leisten fürs Geld. Dafür sind klar positionierte Angebote und eine hohe Dienstleistungsqualität nötig. Mit gut ausgebildeten Mitarbeitern, klugen Big-Data-Tools und gezielten Kooperationen können die Tourismusanbieter authentische Erlebnisse ermöglichen und in lukrativen Segmenten loyale Kunden sowie neue Marktanteile gewinnen. Dazu brauchen sie Ehrgeiz zur Perfektion und Mut zur Lücke – man kann nie alle Gästesegmente gleichzeitig glücklich machen.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

EU Register of beneficial owners

Under the 4th anti-money laundering directive of the European Union, all European countries are obliged to introduce legislation that will create a register of the ultimate beneficial owners (UBOs) of structures. Who qualifies as a UBO? What information will be collected? Who will have access to the data?

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Geld verdienen abseits der Betten

Geld verdienen abseits der Betten

Die Schweizer Hotellerie kann auf ein positives Jahr 2017 zurükschauen. Gemäss Bundesamt für Statistik kletterten die Logiernächte gesamthaft auf 37.4 Millionen und befinden sich fast auf dem Niveau der Rekordjahre 1990 und 2008. Dennoch hat das Wachstum der Logiernächte nicht zu einer höheren Auslastung geführt, da sich parallel auch das Angebot vergrössert hat (siehe PwC European Cities Forecast 2018/2019).

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Intragroup staff leasing

Intragroup staff leasing

The State Secretariat for Economic Affairs (SECO) issued a new directive on the permissibility of intragroup staff leasing. It clarified that intragroup staff leasing also generally requires the relevant licences – contrary to a previous directive dating back to 2003. To fully understand its impact, it is necessary to be familiar with the legal concept of staff leasing. Below, we will therefore provide you with more information on staff leasing in general before focusing on intragroup staff leasing, and on crossborder staff leasing in particular. To conclude, we will give our views on the consequences of the new SECO directive.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Lessons from a hack

Lessons from a hack

What links spies, hackers, cookies and a grey Aston Martin DBS? The answer can be found in the indictment against four suspects that the U.S. Department of Justice published last week. The four individuals are accused of breaching into the networks of a large telecommunication company in 2014 and of stealing large amounts of client data. Despite the legal jargon (albeit with a few sparks of technical details), the reading of the document reveals some interesting aspects in regard to cyber security.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

New Swiss FinTech rules – FINMA to revise its supervisory practice

On 1 February 2017 the Federal Council initiated a consultation process in order to amend Swiss banking regulations. Its aim was to create appropriate regulations for FinTech companies operating outside the traditional financial sector, taking into account the specific risk potential of their respective business models. The proposed revision included amendments to both the Banking Act (“BA”) and the Banking Ordinance (“BO”). The consultation lasted until May 2017. On 5 July 2017 the Federal Council adopted the new Swiss regulatory framework in as far as it concerned the BO. The new regime came into force on 1 August 2017 to enable FinTech companies to benefit from these new rules with immediate effect.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
IOM’s Dialogue on Migration

IOM’s Dialogue on Migration

The private sector needs to engage with NGOs, governments and policy makers in respect of migration policies, which includes irregular migration and integration of migrants. This allows private sector representatives to discuss the impact of the global refugee crisis on business and mobility programmes.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Conditions for Liechtenstein Foundations, Establishments and Trust Enterprises to apply double taxation agreement between Switzerland and Liechtenstein

Conditions for Liechtenstein Foundations, Establishments and Trust Enterprises to apply double taxation agreement between Switzerland and Liechtenstein

The double taxation agreement between Switzerland and Liechtenstein (DTA CH-LI ) is applicable since 1 January 2017. To benefit from the agreement, an entity or individual has to be resident in one or both of the contracting states. The term “resident” requires closer inspection when used in connection with a Foundation (Stiftung), Establishment (Anstalt) or Trust Enterprise (Trust reg.) according to Liechtenstein law.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Liechtenstein has signed an additional DTA with Monaco

Liechtenstein has signed an additional DTA with Monaco

On 29 June 2017 the Government of the Principality of Liechtenstein issued a press release stating that Liechtenstein has signed an additional Double Taxation Agreement (DTA) with Monaco. The DTA between Liechtenstein and Monaco is intended to increase the legal certainty for investors and strengthen the close cooperation between the two countries.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Successful robotics initiatives need the backing of agile staff who are open to change

Successful robotics initiatives need the backing of agile staff who are open to change

In the past, managing change has all too often been equated with (belated) project communications and training. More recently, however, experts have concurred that digital transformation, and ultimately its success, hinges on both the organisation and the people involved. Despite this, robotic process automation (RPA) and artificial intelligence (AI) initiatives in particular still tend to focus very much on the technology, paying little heed to how the organisation is going to keep pace. But if you want to harness the full potential of transformation in terms of saving costs and upgrading the work your people do, you have to make changes affecting your business model, organisation, culture and individual people early on.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.
Cybersecurity: A peek into the nuts and bolts of a state cyber apparatus

Cybersecurity: A peek into the nuts and bolts of a state cyber apparatus

WikiLeaks, the platform that has in the past released thousands of classified US diplomatic cables and, more recently, emails from the Democratic National Committee, has now published leaked documents which it claims came from the CIA. The documents detail tools the intelligence agency uses for surveillance. This includes notably kits to penetrate computers (from Windows to OS X), mobile phones (iOS, Android) and many other devices.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

GDPR key challenges: mandatory data breach notification

The EU General Data Protection Regulation (GDPR) introduces a mandatory data breach notification regime. Companies should develop or update their internal data breach notification procedures by May 2018. These should comprise incident identification systems as well as incident response plans.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

GDPR key challenges: Applicability to non-EU companies

In May 2016, the new EU General Data Protection Regulation (GDPR) became effective. In May 2018, after a transposition period of two years, the GDPR will be mandatorily applicable throughout the European Union (EU). Although the GDPR is EU legislation, under certain circumstances it might be also applicable to Swiss and other non-European companies. This is the case if such company has an establishment in the EU. And the GDPR will also be applicable if, according to the newly introduced “Lex loci solutionis”, a non-European company without establishment in the EU is offering goods or services to the European Union’s market or if it is monitoring the behaviour of people living in the EU.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.

Swiss-US Privacy Shield: New Framework for the Transfer of Data to the USA

The so-called Swiss-US Privacy Shield replaces the Safe Harbor Agreement between Switzerland and the USA. The agreement establishes a new regulatory framework for the transmission of personal data from Switzerland to certified companies domiciled in the US. The same standards will apply for Swiss transfers of personal data to the USA as for data transfers from the EU.

Start adding items to your reading lists:
or
Save this item to:
This item has been saved to your reading list.