top of page
background

Tax ruling for employee participation plans

Streamline ESOP Taxation: Expert Support for Tax Rulings

Setting up an Employee Stock Ownership Plan (ESOP) is a strategic move for startups, but the tax implications can be complex. Securing a tax ruling ensures clarity on share valuation, predictable tax treatment, and an optimized setup that benefits both the company and employees. We help you navigate this critical step efficiently and effectively.

Our unique approach

A tax ruling is essential for ensuring the tax treatment of ESOPs is predictable and favorable, protecting employees from unexpected liabilities while aligning with Swiss tax regulations. We collaborate with tax authorities to establish clear valuation methods and ensure compliance.

 

Here’s how we can support:

  • Tax Ruling Applications: We assist in securing tax rulings that define formula values, such as EBIT multiples, for calculating taxable income at share allocation and exit.

  • Valuation Methodology: We develop valuation methods that align with your company’s growth stage, ensuring a realistic and startup-friendly tax basis.

  • Clarity for Participants: We provide employees with clear guidance on the tax implications of share allocations, addressing potential upfront tax burdens.

  • Blocking Period Adjustments: We incorporate tax-deductible adjustments for shares subject to blocking periods, reducing taxable income.

  • Compliance with Swiss Tax Law: We ensure the ESOP structure aligns with Swiss tax regulations, minimizing risks for both employees and employers.

  • Mitigation of Tax Traps: We address common pitfalls, such as high tax burdens at allocation, by proactively structuring the ESOP to avoid financial strain on employees.

  • Documentation Preparation: We prepare and submit all necessary documents to tax authorities, ensuring accuracy and facilitating the approval process.

  • Post-Ruling Support: We provide ongoing advice to ensure the ESOP remains compliant and beneficial as your company grows.


Our comprehensive approach ensures your ESOP is tax-efficient, compliant, and a powerful tool to attract and retain top talent.
 

What we deliver

  • Tailored tax rulings to define formula values for ESOP taxation

  • Startup-friendly valuation methodologies aligned with Swiss tax practices

  • Reduced tax burdens for employees through blocking period deductions

  • Clear guidance for employees on tax obligations and benefits

  • Compliance with Swiss tax and social security regulations

  • Proactive mitigation of tax traps, such as high upfront liabilities

  • Comprehensive preparation and submission of tax ruling documentation

  • Ongoing support to maintain compliance and maximize ESOP benefits

  • Predictable and favorable tax outcomes for both the company and employees

  • Confidence in a tax-efficient ESOP that drives motivation and retention

The Team

Untitled.png

Founding Partner (Legal) & CEO

Untitled.png

Founding Partner (Business Consulting) & COO

Untitled.png

Senior Associate (Legal)

Frame 37.jpg

Associate (Legal)

Want to learn how Alfred can unlock your business potential?

Book a complimentary intro call with us. We’d love to discuss your needs and how we can assist you.

Frame 37.jpg

10.6.24

News

Swisspreneur Podcast with Diego Seitz

Flexible Packages

Title

$

500

/ mo

  • List item

  • List item

  • List item

  • List item

  • List item

Select

Title

$

500

/ mo

  • List item

  • List item

  • List item

  • List item

  • List item

Select

Title

$

500

/ mo

  • List item

  • List item

  • List item

  • List item

  • List item

Select
USPs.jpg

The Alfred Advantage

founder-led.png

Made by Founders

Alfred is run by successful startup founders. That’s how we are uniquely equipped to see eye-to-eye with entrepreneurs. We know the problems and we find the solutions with you.

combintaion.png

Legal & Business

Our long experience in the startup world has shown us: A symbiosis of legal and business knowledge delivered from a single source brings startups more effective and pragmatic solutions.

Actionable.png

Always Actionable

We know you have no time to theorize. You need actionable solutions now. We do research, so you don’t have to and quickly point you toward impactful adjustments.