On October 12, 2023, the European Foreign Subsidies Regulation (FSR) will take effect, impacting Swiss companies and foreign entities operating in Switzerland.
The FSR introduces notification requirements for large business transactions and public procurement, containing a broad definition of subsidies, including tax benefits, grants, loans, and guarantees. As the deadline approaches, Swiss businesses must prepare for compliance.
The FSR is the EU’s response to concerns that foreign subsidies might distort competition. Even though Switzerland is not an EU member, its economic ties make it a focal point for this regulation.
Swiss companies and foreign groups in Switzerland need to consider these implications:
Conclusion: The European Foreign Subsidies Regulation (FSR) presents a transformative change in Switzerland’s regulatory landscape. With the deadline approaching, Swiss companies need to prepare diligently. This includes establishing robust processes for identifying and notifying foreign subsidies, maintaining transparency, and mitigating legal risks. By doing so, Swiss businesses can navigate the FSR’s complexities, ensuring continued success in a competitive global market.
If you have any questions in relation to this article, please get in touch with Rocco.
Rocco Arcidiacono
Partner & Swiss certified tax expert, TEP
Fiduciaria Mega SA