On 1 January 2013, a new federal law on the taxation of employee shareholdings will enter into force. The Federal Council has issued a draft ordinance that deals with employers' reporting obligations with respect to employee shareholdings. The purpose of the new ordinance is to provide guidance to employers on how to handle the implementation of the new federal law on the taxation of employee shareholdings.
On 28 December 2011, the Federal Department of Finance published a draft of the ordinance regarding the employers' reporting obligations with respect to employee shareholdings. Until 2 March 2012 the draft was subject to consultation. The final wording of the new ordinance is expected in Summer 2012. The new ordinance is intended to enter into force on 1 January 2013, simultaneously with the new law on the taxation of employee shareholdings coming into force.
A national standard
The requirements regarding the declaration of employee shareholdings currently vary from canton to canton. The new ordinance aims at providing a uniform practice throughout Switzerland with respect to the declaration of employee shareholdings by setting out employers’ reporting obligations.
The draft ordinance lists the necessary information that employers have to report on an annual basis to the cantonal tax authorities, both at the time of the acquisition of the employee shareholdings and at the time of the realization of the monetary benefits derived from employee shareholdings. The reporting content depends on the type of employee shareholding. The reporting obligations include the description of the employee shareholdings plan, and for each employee the date of acquisition, the agreed acquisition price, the number of shares acquired and the calculation of the monetary benefits.
In order to be ready for the implementation of the new federal law on the taxation of employee shareholdings on 1 January 2013, employers offering employee shareholdings should start to consider in advance the practical issues that may arise in complying with the new employers’ reporting obligations.
Link to relevant pages of Swiss Confederation website here