Taxes

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.

The withholding tax is a security tax in Switzerland that amounts to 35% on capital income such as interest and dividends to prevent tax evasion. Swiss taxpayers can reclaim this tax by declaring it in their tax return.

Many dream of winning the lottery, which, however, rarely becomes reality and brings with it complex tax rules. Depending on the canton, taxes on winnings vary, some are exempt from withholding tax.

In Switzerland, the federal government, cantons, and municipalities levy standard taxes such as income and profit tax, as well as special taxes such as dog tax and amusement tax. Additional specific charges include the fire brigade replacement levy and water royalties for hydroelectric power stations.

The FDP Council of States member Andrea Caroni has called for a simplification of the value-added tax law to enable relief during the Corona crisis. He proposes a uniform value-added tax rate of about 7% to simplify the system.

The "Zurich Tax Burden Monitor" shows that Zurich has a below-average income tax for the middle class, but has a high tax burden for companies. In an inter-cantonal comparison, Zurich has a low position in the taxation of corporations.

Tax deadlines vary depending on the canton; an extension is possible. Specialists provide an overview of deadlines and assistance with tax returns.