Tax Loss Carryforward Extension

The extended loss carryforward period offers startups greater flexibility during their critical early growth phase, where startups must invest heavily in product development, talent, and market entry, often long before generating sustainable profits. By allowing losses to be carried forward for a longer period, the measure ensures that these early investments are not fiscally penalized simply due to the timing of profitability.

A longer loss carryforward period lets startups project their future tax burden more accurately. This improves the reliability of long-term business plans, supports realistic budgeting for expansion and hiring, and helps align tax considerations with growth milestones. It also gives founders more certainty when deciding on strategic investments, knowing that early-stage losses can still offset profits even several years down the line.

For investors, an extended loss carryforward increases the likelihood that a startup can fully use its tax losses, boosting future after-tax profitability. This makes valuations more compelling, cash flows more predictable, and signals Switzerland’s commitment to innovation-friendly tax policies—reducing perceived risk and making startups more attractive investment targets, especially in capital-intensive, high-growth sectors.

The policy strengthens Switzerland’s appeal as a startup and innovation hub. In a highly competitive global landscape, where countries actively compete to attract high-growth companies, extending the loss carryforward period sends a strong signal. It demonstrates a commitment to long-term innovation and supports entrepreneurship—particularly important in times of economic uncertainty or market volatility.