Switzerland’s National Council has voted against the proposed withdrawal of the flat tax regime for high wealth foreigners. The Council supported that argument that the flat tax makes Switzerland an attractive location for high wealth individuals and leads to the creation of wealth for the regions. The main trade association SGV agreed with the vote as the flat tax increases international competitiveness.
The Federal Council is to however make changes to the flat tax regime from 2016. The tax base will increase from five to seven times the cost of living and a minimum income of CHF 400,000 is to be applied for computation of federal tax. The cantons will be able to determine their own thresholds.
