CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. New Swiss Rules On Tax Deductions For Expats Confirmed

New Swiss Rules On Tax Deductions For Expats Confirmed

by Ulrika Lomas, Tax-News.com, Brussels

19 January 2015


Switzerland's Federal Department of Finance (FDF) has announced that revised rules on tax deductions for expatriates will apply from January 1, 2016.

Under the amendments to the Expatriates Ordinance, the definition of "expatriate" will be made narrower. To be classified as an expatriate for the purposes of the Ordinance, the person must be a senior employee or a specialist, with special professional qualifications, who is sent to Switzerland temporarily by their foreign employer.

In future, expatriates' housing costs will be tax-deductible only if a dwelling abroad is permanently maintained for their use. Moving costs will remain deductible if they are directly related to the move.

School fees will be tax-deductible for minors, providing that the costs relate to education received in a foreign-language private school. Costs relating to food, transport, and supervision before and after classes will not be deductible.

The changes are the result of a lengthy debate on the viability of the Expatriates Ordinance. In 2009, a parliamentary initiative (09.3528) called for an investigation into its legality. In a legal opinion, the Federal Office of Justice (FOJ) confirmed the Ordinance's constitutionality and legality, but it recommended that the provisions on deductions relating to private school and removal costs be made more precise.

Two further parliamentary initiatives (12.3510 and 12.3560) urged the abolition of the deductions, but the Council of States rejected the proposals. The Federal Council instructed the FDF to examine the prerequisites and procedures for the individual deductions. The FDF recommended a number of clarifications to the Ordinance, and these were widely accepted in a three-month hearing conducted in spring 2014.

TAGS: expatriates | compliance | Finance | tax | tax compliance | tax incentives | revenue guidance | employees | fees | food | education | tax planning | Switzerland | tax reform | Expats

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »