Federal Council adopts dispatch on individual taxation

At its meeting on February 21, 2024, the Federal Council adopted the dispatch on the popular initiative "For individual taxation regardless of marital status" (tax justice initiative) and the indirect counter-proposal (Federal Act on Individual Taxation).

The Federal Council recommends rejecting the popular initiative in favor of the indirect counter-proposal.

All persons should be taxed individually regardless of their marital status. The income and assets of married couples will be divided according to their civil status, as is already the case for unmarried couples. The child deduction at direct federal tax level will be increased from CHF 6,700 to CHF 12,000 and divided equally between the parents. The tax rates will be reduced for low and middle incomes.

Parliament has until March 8, 2025 to make a recommendation to accept or reject the popular initiative. The deadline can be extended by one year if a council has previously passed a resolution on the indirect counter-proposal.

The federal decree is available here, the dispatch here and the draft Federal Act on Individual Taxation here.