Tax reform and AHV financing

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28.09.2018 – The Federal Council adopted the dispatch on tax proposal 17 (TP17) on 21 March 2018. The swift implementation of tax proposal 17 will benefit Switzerland as a business location. We want to remain attractive, compete internationally and create jobs. Cantons, cities and communes are committed to TP17; together, we have found a good solution.

SMEs will be strengthened overall, and TP17 will help maintain and create jobs. Citizens will also benefit from the advantages TP17 has to offer. Their tax burden will remain the same as at present if TP17 is accepted.

Although the Confederation will incur a short-term reduction in receipts, international competitiveness will be restored and increased thanks to the dynamic effects of TP17.

From Switzerland's perspective, important countries have decided on far-reaching profit tax reforms. Switzerland must act in order to maintain its position. We therefore want to implement TP17 swiftly in order to preserve tax appeal and ensure legal certainty.

On 7 June 2018, the Council of States included CHF 2 billion for the AHV in tax proposal 17 (TP17) in the form of socio-political compensation. Consequently, the proposal is now known as the Federal Act on Tax Reform and AHV Financing (TRAF). During the autumn session, the National Council largely followed the decisions of the Council of States. On 28 September 2018, the TRAF was adopted in the final vote by the National Council with 112:67 votes and by the Council of States with 39:4 votes. The three-month referendum period will begin after the bill has been published in the Federal Gazette.

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https://www.efd.admin.ch/content/efd/en/home/themen/steuern/steuern-national/steuervorlage17.html