Taxes

The Council of States has expanded the Tax Proposal 17 with measures for pension provisioning to secure broader approval. Each tax franc less results in an extra franc for the AHV.

In Switzerland, the trade of cannabis products with less than 1% THC is legal and booming, yet their taxation as a tobacco product is controversial. In 2017, the federal government collected 15 million francs in taxes on CBD products, although there is no legal basis for it.

Switzerland has transmitted 82 tax ruling reports to 41 countries, including Germany and Great Britain, using the spontaneous information exchange (SIA) for the first time.

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%.