On May 19, citizens will have to vote on tax reform and the financing of the AHV to follow up the two major rejections that marked our economy in 2017: the third corporate reform (RIE III) on February 12 and the pension reform (prévoyance 2020) on September 24. Against this backdrop, the Federal Council and Parliament drew up a new project without delay.
This reform provides for :
- The abolition of tax status
- The introduction of new tax measures in line with international standards
- Tax support for research and development
- Strengthening the AHV by CHF 2 billion a year
To encourage the presence of international companies, which create tens of thousands of jobs in Switzerland, there are currently cantonal tax statutes providing these companies with a more competitive tax system than that of Swiss companies taxed under the ordinary system.
The tax reform abolishes the cantonal statutes and introduces new federal measures that comply with international standards. The federal reform concerns the Federal Law on the Harmonization of Direct Taxes of the Cantons and Municipalities (LHID) and the Federal Direct Law (LIFD).
In order to present a fair proposal, the following measures will be implemented:
- Increase the taxation of dividends to 70% at federal level and to at least 50% at cantonal level, although cantons may provide for higher taxation
- Adjustments to the capital contribution principle – limitation of the exemption for distributions of reserves from capital contributions
- Take cities and municipalities into account when increasing the cantonal share of direct federal tax revenue.
In terms of funding for the AHV, this reform would provide additional funding for the AHV of over CHF 2 billion per year, thus providing a reprieve from the AHV deficit of around 20 years.
Salary deductions would be increased by 0.3%. For employees and employers, this would represent an increase of CHF 1.5 for each salary bracket of CHF 1,000. This would be the first increase in AHV contributions in forty years. The Confederation would increase its contribution to the AHV by CHF 800 million a year.
A referendum has been launched against this project: a number of people believe that the tax gifts to companies will have to be paid for by the population, and that this will lead to a dismantling of services in the fields of training, crèches and care. Others also believe that this referendum stands in the way of the necessary structural reforms of the AHV.
For the Federal Council and Parliament, combining corporate tax reform with a strengthening of AHV finances represents a balanced compromise that will benefit the entire population. The reform will create attractive conditions for all Swiss companies. It will encourage innovation and secure jobs. The AHV is in urgent need of additional revenue.
