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Troisième réforme de l’imposition des entreprises: les effets économiques de l’introduction d’une licence box

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Abstract

The pressure on Switzerland to reform the tax treatment of those companies with a special cantonal tax status has increased substantially over the last years. One element in the current discussion regarding the reform of the corporate tax system is the introduction of a licence box, in which income from patents, licences and trademarks, for instance, are taxed at a lower rate. In this paper, we present an overview of some of the results from a simulation study which deals with the effects of introducing a licence box at the level of the Swiss Cantons (see Chatagny, Köthenbürger and Stimmelmayr, 2014). The results reveal that the licence box, combined with a reduction in the cantonal profit tax rate, limits the outflow of the tax base of those companies that are initially subject to the special tax treatment. However, the reduction of the cantonal profit tax rate and the fact that ordinarily taxed companies also benefit from the introduction of the licence box imply overall tax revenues to decrease.

Suggested Citation

  • Florian Chatagny & Marko Köthenbürger & Michael Stimmelmayr, 2014. "Troisième réforme de l’imposition des entreprises: les effets économiques de l’introduction d’une licence box," KOF Analysen, KOF Swiss Economic Institute, ETH Zurich, vol. 8(3), pages 117-125, October.
    • Handle: RePEc:kof:anskof:v:8:y:2014:i:3:p:117-125
    DOI: 10.3929/ethz-a-005427569
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    References listed on IDEAS

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    1. Florian Chatagny & Marko Koethenbuerger & Michael Stimmelmayr, 2017. "Introducing an IP license box in Switzerland: quantifying the effects," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(6), pages 927-961, December.
    2. Huizinga, Harry & Laeven, Luc, 2008. "International profit shifting within multinationals: A multi-country perspective," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1164-1182, June.
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    More about this item

    Keywords

    Tax Competition; Licence Box; Corporate Tax Reform; General Equilibrium Model;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models

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