Deductions for career-oriented training and further education costs - Part 2: Retraining costs

Starting from the tax period 2016, costs for career-oriented education and further education, including retraining up to a total amount of CHF 12,000 can be deductible from taxes. In our three-part series, we explain to you which costs can be deducted from taxes under which conditions. In this second installment, we explain the costs of retraining.

Retraining Costs

Art. 17 Para. 1bis as well as Art. 33 Para. 1 Let. J DBG explicitly state that education and further training costs also include retraining costs. The central difference is that retraining costs have no direct connection to the current profession. There is also no need to prove that one will work in this new profession later on. Thus, it is an educational course that leads to obtaining a professional qualification. The professional qualification is assumed if someone has the possibility to be financially independent with the knowledge gained in this course. This means that the person is financially self-employed at a 100% employment level.

The deductible amount

According to Art. 33 Para. 1 Let. J DBG, the same requirements apply as for the costs of education and further training. The person who wants to claim the deduction must therefore have at least a secondary level II degree or have reached the age of 20, in which case it must not be a secondary level II degree. Again, a maximum of CHF 12,000 is deductible per tax period. This maximum amount includes all costs for education and further training, as well as retraining costs.

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