If Parliament approves the bill, the Federal Council will table three amendments:
- Complete system change: This includes the abolition of imputed rental value on secondary properties and better exploits the simplification potential of a system change.
- Debt interest deduction: Debt interest must continue to be allowed as a deduction if it serves to generate taxable income. This is the case in particular for rented or leased properties as well as for owner-occupied second properties on which the imputed rental value continues to be levied.
- energy saving and environmental protection deductions: The Commission had originally proposed to link this tax incentive in the Tax Harmonisation Act to the CO2 Act. However, the CO2 Act has been rejected. Therefore, the Federal Council wants to maintain the tax incentive for energy-efficient renovations until 2050 at the latest in order to achieve the 2050 climate target.
The full media release is available here.
See also our article of 25 August 2018 (WAK des Ständerats befürwortet Systemwechsel beim Eigenmietwert und bei der Verrechnungssteuer) and our article of 16 November 2019 (WAK des Ständerats tritt auf Systemwechsel beim Eigenmietwert ein).
