Taxes

The federal government plans to increase the deduction for external child care in the federal tax from 10,100 Fr. to 25,000 Fr. to improve the compatibility of family and career. The cantons retain their competencies in setting their own deduction limits.

The automatic exchange of information (AEOI) is now also being implemented with Hong Kong and Singapore. Eight additional states are newly added to the list of AEOI partner states of Switzerland.

The Swiss Customs Administration has developed an app through which private individuals can quickly and directly declare goods. The app has restrictions on value-added tax and charges a flat rate of 7.7% instead of reduced rates.

Tax Proposal 17 introduces new measures, such as the optional relief on equity for capital tax and special provisions for the disclosure of hidden reserves. Moreover, adjustments to the transposition and extensions of the lump-sum tax credit are made.

The planned increase in family allowances and adjustments in the financial compensation of Tax Proposal 17 aim to create social balance and maintain stability in the financial system. The municipalities must be considered in the increase of the cantonal share of the direct federal tax, but without legal obligation.

SV17 introduces a mandatory increase in dividend taxation to at least 70% and an increase in the cantonal share of the direct federal tax to 20.5%.

The SV17 introduces optional R&D deductions but limits the total relief from these and other measures to 70% of the taxable profits. New rules aim to strengthen competitiveness in the research sector, with cantons able to set certain minimum taxations.

Switzerland is reforming its corporate taxes, including the abolition of cantonal status companies and the introduction of a patent box that promotes research and development. With Tax Proposal 17, taxation increases for many companies, while the cantons are lowering their tax rates.

The Swiss Federal Council is responding to international trends with Tax Proposal 17 and aims to improve competitiveness. Following the rejection of Corporate Tax Reform III and increasing international pressure, there is an urgent need for action.