Taxes

In Switzerland, up to CHF 12,000 in retraining costs per tax period are deductible, regardless of the existing profession. Retrainings make it possible to gain a new professional qualification that promises financial independence with full-time employment.

Vocational training and further education costs up to CHF 12,000 are tax-deductible if certain conditions are met. Only costs borne by oneself are deductible; employer contributions do not count.

The increased VAT rates in Switzerland since 2011 for supplementary disability insurance financing will end in 2017, yet a reduction is unlikely due to new financing for rail infrastructure and pensions. From 2018, therefore, the rates could remain unchanged or even increase due to political decisions.

Since February 15, 2017, a legislative amendment has been in effect that simplifies intra-group dividend distributions and introduces a maximum fine of 5,000 francs instead of default interest. Changes, based on a Federal Court decision from 2011, allow for the reclaiming of default interest in qualified cases.

Since 2010, the value-added tax law has been revised to eliminate disadvantages for domestic firms compared to foreign companies. The revised law comes into effect on January 1, 2018, and includes new regulations for taxable companies.

The Swiss Corporate Tax Reform III envisages the equal taxation of domestic and foreign profits to comply with EU and OECD standards. A vote on this will take place on February 12, 2017, accompanied by criticism regarding the relief for large companies.

The parliament has increased the cantonal share of the direct federal tax to 21.2% to give the cantons financial leeway. This measure is intended to help prevent corporate relocations.

The USR III newly allows companies to deduct fictitious interest on excess equity for tax purposes, in order to offset losses from tax privileges. There is criticism of the potential "punishment of saving" through the current taxation of excess returns.

Most Swiss cantons plan to lower their profit tax rates and offset the losses through higher dividend taxes. This is happening in response to international pressure and the loss of tax privileges by 20,000 companies.