zsis) - Center for Swiss and International Tax Law

Adjustment of the price list regarding the Direct Federal Tax 2018

On 11 March 2019, the Swiss Federal Tax Administration (FTA) published an adjustment to the share price lists (ICTax) regarding the Federal Direct Tax 2018.

Circular "List of providers of recognised pension products of tied pension provision (pillar 3a)

On 8 February 2019, the Federal Tax Administration (FTA) published the circular "List of Pillar 3b endowment insurance policies eligible for surrender".

Increase in tax deductions for health insurance premiums

The Commission has also discussed two motions calling for an increase in the deductions for health insurance premiums in direct federal tax. The Motion Grin (17,3171), which would like to almost double the current deductions, was transferred with 9 to 3 votes. For the majority of commission members, health insurance premiums are compulsory charges and part of the unavoidable cost of living. Higher deductions are justified by this and by the strong growth in premiums over the last few years. A minority rejects the motion because higher incomes would benefit disproportionately. The motion Lehmann/Regazzi (15,4027), which wants to make self-paid health insurance premiums fully tax deductible according to income, was rejected by 8 votes to 4. The gradation is problematic and complicates the tax system.

FTA publishes withholding tax treatment of profits from the Money Gaming Act

On 6 February, the Federal Tax Administration (FTA) published a specialist information document on the withholding tax treatment of profits from the Money Gaming Act.

Residential property taxation: discussion of the preliminary draft commenced

The Commission for Economic Affairs and Taxation of the Council of States (WAK-S) has accepted without opposition the preliminary draft on the system change in the taxation of home ownership (17,400) and has largely conducted the detailed consultation.

Once more self-disclosures

Last year, the tax office of the Canton of Zurich received 7250 voluntary declarations, thus again significantly exceeding the record figure of the previous year (6200). This is due to the Automatic Information Exchange (AIA) of bank data, which came into force between numerous countries at the beginning of 2017. Since the possibility of voluntary reports without penalty (2010), the cantonal tax office had previously received 850 to 2100 such reports per year.

Greater fiscal consideration of the costs of third party childcare

The Economic Commission of the National Council has accepted without opposition the Federal Council's Dispatch 18.050 concerning the tax recognition of third-party childcare costs. This proposal is related to the initiative for skilled workers and is intended to promote the employment of women. The Commission considers that taxing the cost of external care can be an argument for women wishing to enter the labour market, as the cost of care is too high for many young families. In the overall vote, the Commission approved the unchanged proposal by 11 votes to 8 with 5 abstentions. However, a minority of the Commission wishes to limit the deduction to the proven costs of institutional provision of childcare outside the family (rejected by 18 votes to 5), while a second minority demands a deduction not only for third-party but also for self-care of children (rejected by 13 votes to 10). The transaction is expected to be dealt with in the spring session 2019.

Marriage penalty: External expert recommends a broader data basis for the FTA

The statistical basis for direct federal tax, on which the Federal Tax Administration (FTA) can draw, is insufficient. Therefore, especially the estimation of the number of persons affected by the marriage penalty remains subject to uncertainty. This is the conclusion of an external report commissioned by the Federal Department of Finance (FDF), the results of which were presented to the Federal Council at its meeting on 7 November 2018.