The Swiss tax system

17.12.2018 - The Swiss tax system is characterised by considerable tax autonomy of the cantons, which leads to intense tax competition between the cantons. The Confederation has only a limited right to levy taxes. This authority must be renewed by the people and the cantons. The existing financial regime is valid until the end of 2020. The new 2021 financial regime extends the right to levy direct federal tax and value added tax to the end of 2035.

In order to be able to keep pace with developments in society, the tax system also has to be continually adjusted. The Federal Act on Tax Reform and AHV Financing (TRAF), which was passed by Parliament on 28 September 2018, is one of the most important tax policy proposals. The starting point for this tax reform is the replacement of existing tax regimes that are no longer in keeping with international standards.

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The Swiss tax system