Deduction for childcare costs

With regard to direct federal tax, parents will in future be able to deduct the costs of third party childcare from their income up to a maximum of CHF 25,000 per year and child. Today the amount is CHF 10100.

During the consultation process, the Federal Council had also proposed that the cantons should grant a deduction of at least CHF 10,000. There was resistance to this in the consultation process. The Federal Council has therefore decided not to do so.

In the short term, the measure will lead to a reduction in direct federal tax revenues of around CHF 10 million, of which the cantons would have to bear CHF 1.7 million (17%).
The proposal is being presented as part of the Skilled Workers Initiative (FKI), which aims to reduce negative employment incentives in the tax system. Employment incentives will be strengthened, especially for well-qualified mothers. In the short to medium term, an increase by an estimated 2500 full-time jobs is expected. In the longer term, it can be assumed that the measure will be self-financing due to the positive employment impulses.