Implementation of the patent box in the Canton of Zurich as per January 1, 2020

Now it is official: The Canton of Zurich has approved the tax proposal 17 by a majority of 56 %. The Canton of Zurich has thus positioned itself in the international competition for business locations with an attractive patent box that conforms to OECD standards. In accordance with the international OECD standard, the Nexus approach can be applied by patent, product or product family.

Income from patents and similar rights, to the extent that it is based on qualifying research and development (R&D) expenses, can be included in the calculation of taxable net income with a tax relief of 90 %.

In addition to the patent box, a special deduction of 50 % is provided for research and development expenses.

It is worthwhile for all companies with scientific and technological developments to review their patent strategy from an intellectual property and tax point of view, allowing them to benefit from the advantages of the patent box.

An optimal tax advantage is achieved by a combination of competences in tax and patent law. RENTSCH PARTNER's attorneys at law and patent attorneys, and the tax experts of PwC Switzerland bundle their expertise regarding the patent box to enable companies in Switzerland to achieve the optimum tax benefit.

Further information can be found at www.patent-box.org