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. Swiss People's Party Opposes WHT Revision

Swiss People's Party Opposes WHT Revision

by Ulrika Lomas, Tax-News.com, Brussels

31 March 2014


Changes to support more non-resident workers' claims for tax relief on Swiss income are unnecessary and will increase the cost of tax administration, the Swiss People's Party has said.

All foreign workers without a permanent residence permit (permis or Niederbelassungsbewilligung C ) are, in principle, taxed on income sourced in Switzerland. Employers are required to directly deduct tax from an employee's salary without tax relief.

Employees are entitled to claim any tax deductions due through the filing of a retrospective ordinary assessment. At the moment, the Swiss Tax Administration automatically carries out this assessment for foreign nationals with gross income above CHF120,000 (USD135,287).

The Federal Council has proposed lowering this gross income threshold to CHF60,000, while also allowing filings from persons with remuneration below this amount. The measure is designed to comply with a legal ruling from the country's Federal Court.

In January 2010, the Court ruled that, although the withholding tax regime is justified, the provisions as they stand contravene the agreement on the free circulation of persons concluded with the European Union. It said that non-domiciled employees realizing most of their global income in the Confederation are entitled to the same tax breaks as those subject to ordinary taxation. It said the Government must modify the legislation to ensure the fair treatment of all taxpayers.

The SVP has said that, since the regime was harmonized 20 years ago, the current provisions are applied fairly and uniformly across Switzerland, and insisted that there is no need to amend the system now.

TAGS: individuals | tax | employees | tax thresholds | legislation | withholding tax | Switzerland | tax breaks | individual income tax | Europe | Tax

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 »