Consultation on individual taxation

The Federal Council has initiated the consultation on individual taxation, which is intended as an alternative to the tax fairness initiative to promote high work incentives and gender equality.

2022

In the session of December 2, 2022, the Federal Council opened the consultation on individual taxation. If individual taxation were to be implemented, each person would have to file their own tax return, even if they are married. The proposal serves as an indirect counter-proposal to the Tax Fairness Initiative.

Current Regulation

Currently, married couples and couples in registered partnerships are taxed jointly. This can result in married couples being potentially disadvantageous compared to unmarried couples, as incomes and assets are added together under joint tax liability. Thus, if both partners work and earn a certain income, they fall victim to tax progression.

What would change?

To counteract the inequality mentioned above, the Federal Council has opened the consultation on individual taxation as an indirect counter-proposal to the Tax Fairness Initiative. Individual taxation means that each person is taxed individually and must fill out their own tax return, regardless of whether they are married or not. The Federal Council aims to create the highest possible work incentives for second earners and to promote equal opportunities for genders. Additionally, the Federal Council proposes various accompanying measures to ensure balanced taxation.

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