How to Use This Cases Page

Case 1 – Relocating a Holding Company to Basel-Landschaft

Practical outcome

• Under intercantonal rules, the departure canton typically taxes hidden reserves to the extent they are allocated to that canton. A careful opening/closing balance sheet is required.
• In Basel-Landschaft, the holding company’s equity becomes part of the Basel-Landschaft capital tax base. Participation relief typically shapes the profit tax profile; capital tax modelling focuses on equity composition and any financing-function leverage constraints.
• Advance rulings are often used to:
  • Confirm tax neutrality or managed taxation of the migration; and
  • Secure the post-migration treatment of holding/financing activities and substance alignment under Basel-Landschaft practice.

Lesson: Seat migrations are rarely “just” a register change. They require coordinated planning between cantons, clear allocation of hidden reserves and early dialogue with the Basel-Landschaft tax authorities.

Case 2 – Start-up with Losses & Minimum Tax

Practical outcome

• The start-up files annual corporate tax returns, even in loss years, to preserve loss carryforwards and to document the R&D profile and project accounting.
• Once the company is beyond the initial “grace period” for new entities, the minimum tax becomes relevant: even if no profit tax is due, a minimum cantonal/communal tax is levied each year.
• Early documentation of R&D, funding and IP helps later when:
  • Electing into a patent box regime; or
  • Claiming R&D super-deductions once profits arise.
• Investor due diligence often focuses on loss carryforwards, expected effective tax rates, and how IP income will be taxed once commercialisation starts.

Lesson: Even loss-making start-ups should treat tax compliance as an asset. Proper returns, loss tracking and R&D documentation can materially improve the future effective tax rate once the scale-up succeeds.

Case 3 – IP & R&D Using STAF Instruments

Practical outcome

• The group designs a structure where:
  • IP ownership and key R&D functions are effectively in Basel-Landschaft;
  • IP income and costs are tracked in detail (project-based or patent-family based); and
  • Transfer pricing for licences and development services aligns with OECD principles and substance.
• The company requests an advance ruling to:
  • Confirm qualification for the patent box; and
  • Agree acceptable methodologies for separating box-eligible and non-eligible income.
• Capital tax is monitored because IP step-ups and accumulated reserves increase equity; modelling incorporates any available relief features for qualifying assets.

Lesson: STAF instruments are powerful but documentation-heavy. For IP & R&D, Basel-Landschaft expects a credible nexus between functions, risks and income, backed by robust tracking and rulings.

Case 4 – Real Estate Company with Cross-Cantonal Property

Practical outcome

• The company prepares an allocation model based on accepted Swiss practice:
  • Profit allocation by property (rental income, operating costs, depreciation); and
  • Capital allocation by property values and related financing.
• Basel-Landschaft taxes only the portion of income and equity attributable to Basel-Landschaft properties and any residual head-office functions located in the canton.
• Shareholder loans are tested against thin-capitalisation guidelines. Any excess may be reclassified as hidden equity, increasing capital tax base and potentially triggering non-deductible interest and withholding tax issues.

Lesson: Allocation is central for real estate groups. Basel-Landschaft focuses on substance, financing and profit drivers by property and canton. Inconsistent allocation keys are a common audit focus.

Case 5 – Group Financing & Thin Capitalisation

Practical outcome

• The group benchmarks interest rates and margins, preparing transfer pricing documentation and testing them against Swiss safe harbour indications where available.
• Basel-Landschaft reviews whether shareholder loans exceed acceptable leverage for a finance company. Excess debt may be treated as hidden equity, with corresponding non-deductible interest for profit tax and increased equity for capital tax.
• Cross-border lending adds treaty and withholding tax considerations. Often, the group adjusts leverage, pricing, or guarantees before filing a ruling request with cantonal and federal authorities.

Lesson: Group financing is both a profit tax and capital tax topic. Basel-Landschaft expects coherent leverage, pricing and documentation that fit the group’s overall risk and funding profile.

Rulings, Audits & Practice Points

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