Introducing an IP license box in Switzerland: Quantifying the effects

Arbeitspapier

In response to mounting international pressure to reform the ring-fenced elements of its tax system, the Swiss government has put forward a comprehensive tax reform package. The proposal comprises the introduction of a license box, a substantial reduction in cantonal pro t 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 license box, combined with the reduction in the cantonal pro t taxes, limits the out ow of the tax base of those companies that bene t from the current preferential tax treatment. The reduction in cantonal profit taxes and the fact that regularly taxed companies additionally benefit from the license box render the reform package costly, such that tax revenues might well decline after the reform.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: KOF Working Papers ; No. 416

Classification and Topics

• Classification: Wirtschaft ; Business Taxes and Subsidies including sales and value-added (VAT) ; Fiscal Policies and Behavior of Economic Agents: Firm ; Computable General Equilibrium Models
• Subject: Tax Competition ; License Box ; Mobile Firm Profits ; Corporate Tax Reform ; Dynamic General Equilibrium Model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chatagny, Florian ; Koethenbuerger, Marko ; Stimmelmayr, Michael
• Event: Veröffentlichung
• (who): ETH Zurich, KOF Swiss Economic Institute
• (where): Zurich
• (when): 2016

Further information

• DOI: doi:10.3929/ethz-a-010746460
• Handle: http://hdl.handle.net/10419/148977
• Last update: 10.03.2025, 11:41 AM CET