Taxes Council of States says yes to taxation regardless of marital status
In principle, Parliament supports the idea that everyone should complete their own tax return regardless of their marital status. On Monday, the Council of States, as the second chamber, approved individual taxation, but weakened the proposal.
10.03.2025, 19:33
10.03.2025, 19:43
SDA
On Monday, the Council of States said yes to the law on individual taxation drafted by the Federal Council by 23 votes to 21. The No votes came from members of the Center and SVP parliamentary groups.
The new law is intended as an indirect counter-proposal to the initiative "For individual taxation independent of marital status (tax justice initiative)" by the FDP Women. Individual taxation is to be introduced at federal, cantonal and municipal level in a few years' time. Parliament has not yet decided on the voting recommendation for the popular initiative itself.
According to the draft law, the income and assets of married couples are to be divided according to their circumstances under civil law, as is currently the case for unmarried couples. The Federal Council wants to almost double the child deductions compared to today and divide them equally between the parents.
Its aim is to implement the initiative's request in the law more quickly. There should be incentives for second earners to work longer hours. This should strengthen everyone's financial independence and attract more skilled workers to the labor market. The Federal Council expects 1.7 million additional tax dossiers.
However, the Council of States has weakened the Federal Council's proposal: in consideration of parent couples with unequal incomes, it decided that child deductions can be transferred from one parent to the other so that the deduction does not expire if no tax is due on the lower income.
A minority led by Eva Herzog (SP/BS) opposed this in vain. She argued that the transfer would partially reverse the income incentives and cement the current situation.
In order to cushion the financial impact of the additional deduction option on the budget, the Council of States increased the child deduction less than the Federal Council and National Council wanted. It is only to be increased from CHF 6,800 to CHF 10,700 instead of CHF 12,000.
Currently, married couples and same-sex couples living in a registered partnership are taxed jointly in Switzerland. If both people are gainfully employed, they sometimes have to pay higher taxes than cohabiting couples with two separate tax assessments due to progression.
The bill goes back to the National Council.
