Art. 20a Ordinance of 7 November 2007 on Financial Equalization and Cost Compensation (OFCC) - Calculation Basis for Legal Entities

The calculation of the determining profit for legal entities is based on the net taxable profit as defined by Art. 58 of the Swiss Federal Tax Act (LIFD), after deducting the net income from equity interests as defined by the LIFD. Profits are divided between those subject to ordinary taxation and those derived from patents and similar rights as outlined in Art. 24 b of the Federal Law of 14 December 1990 on the Harmonization of Direct Taxes of Cantons and Municipalities (LHID).

In the year of the first reduced taxation of profits derived from patents and similar rights, the research and development expenses as specified in Art. 24 b, para. 3, LHID are considered, but without the potential additional deductions as described in Art. 25 a of the LHID. These expenses are weighted on a reduced basis; Annex 6 a defines the weighting method. The calculation is performed in the first year, even if the canton guarantees this taxation through another method within five years.

Profits derived from patents and similar rights are weighted using the zeta-2 factor.

The determining profit of a legal entity corresponds to the sum weighted by the zeta-1 factor of profits subject to ordinary taxation as per para. 1, and the result of the calculations defined in paras. 2 and 3.

When the result of the calculation is negative, the determining profit is zero.

← Art. 15–20 FiLaV Ordinance of November 7, 2007, on Financial Equalization and Cost Compensation (OPFCC) - Resource Potential and Aggregate Tax Base Art. 20b OPFCC →