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. Switzerland To Tackle Marriage Tax Penalty

Switzerland To Tackle Marriage Tax Penalty

by Ulrika Lomas, Tax-News.com, Brussels

04 September 2012


The Swiss Federal Council has recently launched a consultation process on a federal law aimed at eradicating, within the framework of direct federal tax, the penalization of married couples and married pensioners with a dual income compared to their cohabiting counterparts.

The aim is to ensure that the taxation of married couples is in accordance with the constitution.

In its release, the Federal Department of Finance (FDF) explains that married couples and non-married couples are currently treated differently in terms of taxation. Depending on the amount and the particular distribution of income, couples may be penalized, the FDF adds, alluding to a ruling from the federal court, which stipulates that a difference in the tax burden of co-habiting couples and married couples of more than 10%, to the detriment of the latter, is contrary to the constitution.

As regards direct federal tax, couples affected by such additional charges are married couples with a dual net income in excess of CHF80,000 (USD83,814) and married pensioners with income above CHF50,000.

The FDF states that the Federal Council aims to end the penalization by introducing a corrective mechanism, involving an alternative calculation of the tax charge.

The Federal Council is also proposing to introduce, within the framework of direct federal tax, a CHF8,100 deduction for married couples with a single income to end current imbalances.

Concluding its release, the FDF insists that the measures provided for in the bill ensure that the Confederation’s tax law remains as neutral as possible. Pointing out that the measures will lead to an annual shortfall of revenues from direct federal tax of around CHF1bn, the FDF reveals plans to finance the losses by means of both spending reductions and revenue increases. A rise in the rates of value-added tax (VAT) is among the avenues being explored, the FDF ends.

The consultation process is due to end on December 5.

TAGS: court | Finance | tax | value added tax (VAT) | law | Switzerland | individual income 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 »