Introducing an IP Licence Box in Switzerland: Quantifying the Effects
METADATA ONLY
Loading...
Author / Producer
Date
2015-07
Publication Type
Working Paper
ETH Bibliography
yes
Citations
Altmetric
METADATA ONLY
Data
Rights / License
Abstract
In response to the increasing international pressure on Switzerland to reform the ring-fenced elements in its tax system, the Swiss Government has put forward a comprehensive tax reform package. The proposal comprises, among other things, the introduction of a licence box, a substantial reduction in the cantonal profit tax rates and an allowance for excess corporate equity. We apply a computable general equilibrium model to quantify the economic effects of this reform. Our results reveal that the licence box, combined with the reduction in the cantonal profit tax, limits the outflow of the tax base of those companies that benefit from the current preferential tax treatment. The reduction in the cantonal profit tax and the fact that regularly taxed companies also benefit from the licence box render the reform package costly, such that the tax revenues will decline after the reform.
Permanent link
Publication status
published
External links
Editor
Book title
Journal / series
Volume
Pages / Article No.
5450
Publisher
CESifo
Event
Edition / version
Methods
Software
Geographic location
Date collected
Date created
Subject
Tax Competition; Licence Box; Corporate Tax Reform; General Equilibrium Model
Organisational unit
02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
03988 - Köthenbürger, Marko / Köthenbürger, Marko