Taxes

The death of a person quickly brings about tax obligations, including the final tax return and the recording of the estate. Survivors must fill out various forms and submit them to the tax authorities.

Late tax payments incur default interest, while advance payments can earn compensation or balancing interest. Especially for legal entities, advance payments can reduce business expenses through interest income.

Declaration errors allow for a one-time penalty-free self-disclosure, similar to the get-out-of-jail-free card in Monopoly. Incorrect information can lead to back taxes and fines, except in the case of the first self-disclosure.

Tax data may only be disclosed in accordance with data protection law. Disclosure is often based on legal grounds or the consent of the taxpayer.

The Economic Commission of the Council of States has made a proposal for the abolition of the imputed rental value, which was discussed in the Federal Council without agreement. The imputed rental value is a form of taxation for owner-occupied properties in Switzerland, which is politically controversial and so far irreformable.

As of January 1, 2022, the uniform interest rate for default and refund interest on taxes and duties is 4 percent, while the rate for voluntary prepayments remains at 0 percent. The new interest rate regulation EFD replaces five old regulations and introduces annual adjustments to minimize administrative effort.

The Federal Council wants to increase the deduction amount for health and accident insurance premiums: singles up to 3,000 CHF, married couples up to 6,000 CHF. At the same time, deductions for supplementary nursing care and life insurances are eliminated.

The G7 nations agreed on a minimum tax for large corporations of at least 15% and a digital tax to close tax loopholes. They are aiming to extend the regulation to the G20 but expect resistance from the BRIC countries.

Cheating on the tax return in Switzerland can entail hefty penalties, including fines or imprisonment. Swiss tax law not only punishes tax evasion severely, but also minor offenses.