At its meeting on 31 January 2018, the Federal Council adopted the key points for the dispatch on tax proposal 17 (SV17). The Federal Department of Finance (FDF) has been commissioned to prepare a dispatch by the end of March 2018.
According to a press release issued by the FTA on 31 January 2018, the parameters set by the Federal Council, which will be included in the dispatch on the SV17, are strongly oriented towards the consultation draft.
The most important change to the consultation draft is that the Federal Council wants to increase the cantonal share of direct federal tax from 17% to 21.2%, instead of only 20.5% as originally planned. This adjustment fulfils the most important demand of the cantons and municipalities (see also our contributions of 9 June 2017, 25 June 2017, 6 September 2017 and 10 September 2017).
The Federal Council is adhering to the other key requirements. Accordingly, the patent box is to be introduced as a mandatory requirement for all cantons. Optionally, additional deductions for research and development expenditure can be granted at cantonal level. Dividends from qualified participations should be taxed at 70% at federal level and at least 70% at cantonal level. The tax relief limit should be 70%. In addition, the minimum federal requirements for family allowances should be increased by CHF 30 per child. Together with the Dispatch, the FDF will also draw up an estimate of the dynamic financial impact of the SV17 on the Confederation and the cantons.
The Federal Council is adhering to the planned timetable and would like to adopt the dispatch on SV17 at the end of March 2018, with the aim of concluding the parliamentary debate in the autumn session of 2018. If no referendum is held, the first measures of the SV17 could come into force at the beginning of 2019 and the majority of the measures from 2020. The Federal Council continues to regard the reform as very urgent due to the significant change in international pressure.
