At its meeting on 20 August 2018, the Committee for Economic Affairs and Taxes of the Council of States (WAK-S) decided how the system change in imputed rental value should be implemented and commented on the system change in withholding tax.
Second homes should be excluded from the change of system. For the main residence affected by the system change, property maintenance costs should no longer be deductible in future. Energy-saving and environmental deductions as well as deductions for monument preservation work should only be deductible if the relevant canton so provides. The debt interest deduction on owner-occupied residential property is also to be abolished, with a deduction for rented properties being possible. The WAK-S will probably deal with the preliminary draft in the 1st quarter of 2019.
The WAK-S has also agreed to the change from the debtor to the paying agent principle for withholding tax, whereby voluntary reporting will no longer be permitted. It was also unanimously agreed that the reporting period for winnings in kind from taxable money games and from lotteries and games of skill for sales promotion purposes should now be 90 days after the due date of the prize.
The press release and other documents are available here.
