Taxes The bill for the switch to individual taxation is ready
The bill for the introduction of individual taxation regardless of marital status has been finalized. However, a number of decisions on the fundamental change at federal, cantonal and communal level were taken by narrow to extremely narrow majorities.
03.06.2025, 11:06
03.06.2025, 13:13
SDA
On Tuesday, the Council of States prepared the bill to restructure the Swiss tax system for the final vote. Council President Andrea Caroni (FDP/AR) cast the deciding vote three times.
No more joint taxation
Today, 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 separate assessments due to progression.
In 1984, the Federal Supreme Court ruled that tax discrimination against married and registered couples compared to cohabiting couples was unconstitutional.
If everyone pays their own taxes in future, regardless of their marital status, this should motivate more people to take a job or increase their workload. Individual taxation is intended to make married second earners, mostly women, more financially independent.
Individual taxation should not only be levied by the federal government, but also by the cantons and municipalities. Opponents pointed out that the marriage penalty had been abolished in the cantons. With the changeover at federal level, the cantons would be forced to follow suit at great expense. The opponents also wanted to maintain the understanding of marriage as an economic union.
Central issue resolved
The central question of whether the child deduction for federal tax purposes could be transferred from one partner to the other for the benefit of couples with very different incomes was controversial until the very end. This transfer option is now off the table.
The child deduction for federal tax - now CHF 12,000 - will be split equally between both parents. This is what the Federal Council had proposed, and this is what the Council of States has now also decided, after the National Council, by the narrowest of majorities.
Those in favor of the transfer option argued that it was fair and gave couples the freedom to choose a family model. In the end, however, a minority led by Eva Herzog (SP/BS), who wanted to follow the National Council, prevailed. Herzog argued in favor of more costs and more administrative work.
Compromise on the tax rate
The chambers also reached an agreement on the tax rate for the system change. Again with Caroni's casting vote, the Council of States agreed with the National Council's compromise. This is intended to reduce the loss of tax revenue to CHF 600 million. In the Federal Council's version, it would have been CHF 870 million.
Erich Ettlin (center/OW) pointed out that someone would have to pay the difference of CHF 270 million and more people would have higher tax rates. However, Finance Minister Karin Keller-Sutter also campaigned for the National Council's compromise proposal. Half of the taxpayers would be relieved with this model.
Tax justice initiative as a backup
The law on individual taxation is the indirect counter-proposal to the FDP Women's Tax Fairness Initiative. FDP National Councillor Susanne Vincenz-Stauffacher (SG), who is a member of the committee, was pleased that the law largely implements the initiative.
She assumes that the initiative will be withdrawn if the bill survives the final vote and no referendum is held. If there is a vote and it ends in a no, the initiative is the backup, said Vincenz-Stauffacher on request.
The initiative itself was recommended for approval by parliament by a narrow majority: the National Council by 98 votes to 96, the Council of States with the casting vote of Council President Caroni. In both councils, the members of the SP, FDP, Greens and GLP prevailed against the SVP and the Center Party. The Federal Council recommends a no to the initiative. It wants to implement the matter by law.
In any case, the marriage penalty - for taxes and also for AHV - remains on the agenda. After all, the debates on these centrist initiatives are still to come.
