Federal Council sets parameters for dispatch on tax proposal 17

Press releases, 31.01.2018

During its meeting on 31 January 2018, the Federal Council set the parameters for the dispatch on tax proposal 17. Based on the results of the consultation procedure, the Federal Council decided that the cantons' share of direct federal tax should be raised to 21.2%. The Federal Department of Finance (FDF) has been instructed to prepare the dispatch by the end of March.

The Federal Council's parameters that will be contained in the dispatch on tax proposal 17 (TP17) are closely aligned with the consultation draft. The most significant difference is that the Federal Council wants to raise the cantons' share of direct federal tax from 17% to 21.2%, instead of 20.5%. The key requirement of the cantons and communes will be met with this adjustment.

The Federal Council is sticking to the other core requirements, also bearing the balance of the reform in mind. The aim is to introduce a mandatory patent box for all cantons and additional deductions for research and development expenditure on an optional basis. Dividends from qualified participations should be taxed at 70% at federal level and at 70% at least at cantonal level. The relief restriction should be set at 70%. In addition, the Confederation's minimum guidelines for family allowances should be increased by CHF 30 per child.

Together with the dispatch, the FDF will also prepare an estimate of the dynamic financial implications of TP17 for the Confederation and the cantons.

Federal Council is sticking to timetable

The Federal Council would like to adopt the dispatch on TP17 at the end of March so that the parliamentary deliberations can be concluded as early as the 2018 autumn session. If a referendum is not called, the first TP17 measures could come into force at the beginning of 2019 and most of them could come into force from 2020. The Federal Council still sees the reform as highly urgent due to the significant change in international pressure.

Address for enquiries:

Roland Meier, Media Spokesperson FDF
Tel. +41 58 462 60 86, roland.meier@gs-efd.admin.ch


The Federal Council
Federal Department of Finance