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A law published 16 May 2007 introduces a European-style participation exemption regime in Russia. Under the new regime, which comes into effect on 1 January 2008, dividends received by Russian parent companies from qualifying participations will be exempt from tax.

On March 21st 2007 the UK government issued its annual Tax Budget. Most notable change from a Swiss perspective is the reduction of the corporate income tax rate from 30% to 28%, as from 1st April 2008, which will reduce the tax rate of a Swiss subsidiary of a UK parent that is needed to avoid the application of UK CFC legislation from 22.5% to 21%.

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Over the past few years growth and profitability in the private banking market have been very strong. However, shifting external conditions are likely to make the future more challenging and complex.

On 19 June 2007, the Ministry of Finance and the State Administration of Taxation jointly issued a circular that may significantly increase the tax burden on many exporters.

In a significant change for Swiss business, the recent revisions to the Code of Obligations (CO) impose potentially significant challenges on all Swiss companies. Companies must implement an appropriate internal control system and adequately document it.

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