Most corporate re-organizations (e.g. mergers, de-mergers, transfer of business assets within a group of companies, vertical and horizontal spin-off of business or part of business, share-for-share transactions and cross-border reorganization) are generally possible on a tax neutral basis when the assets remain in Switzerland and the book values (tax values) of the assets and liabilities transferred remain unchanged. Depending on the type of transaction, a restriction period (usually 5 years) may be placed on a subsequent disposal of specific assets or shares. In addition, some requirements on the nature of the transferred business or participations may apply. For re-organizations, it is best practice to apply for an advance tax ruling with the competent tax authorities.
In addition, under certain circumstances assets and qualifying shareholdings can be substituted tax neutrally.