After the rejection of the Corporate Tax Reform III package following a referendum held in February 2017, the Federal Council published new draft legislation for a tax reform (the 'Tax Proposal 17') on 6 September 2017 and initiated a public consultation process that will last until 6 December 2017.

Overall, the Tax Proposal 17 includes measures that are fairly similar to the recently rejected reform package, with some modifications designed to achieve buy-in from the majority of the Swiss populace. As in the previous package, the Tax Proposal 17 would repeal the current privileged corporate tax regimes (holding, mixed and domiciliary or auxiliary companies, the finance branch regime and the principal company regime) and introduce some new measures designed to maintain Switzerland's competitiveness in the international tax arena (in particular, an OECD-conforming patent box regime and a superdeduction for R&D expenses). However, the highly controversial notional interest deduction is no longer included in the current proposal.

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