In the future, the establishment of a trust should also be possible under Swiss law.
On behalf of Parliament, the Federal Council is proposing the introduction of a new legal institution in the Code of Obligations (CO). Last week, the Federal Council opened the corresponding consultation procedure at its meeting. This will last until 30 April 2022. For more, see the following links:
In addition to the new regulation of trusts in the CO, various federal laws need to be amended accordingly. In particular, the taxation principles of trusts should explicitly be regulated in tax laws. In this context, the Federal Council proposes to maintain the current principles.
Currently, the taxation is based on the general principles of the tax law and two circulars. Specifically, irrevocable discretionary trusts - without fixed interest of beneficiaries resident in Switzerland - are to be taxed in principle in the same way as foundations. The challenges of incorporating the taxation principles within the tax area may become a stumbling block.