It was reported that SGV (Switzerland’s main trade association), represents small- and medium-sized enterprises (SMEs) in Switzerland, has accepted the decision of the Swiss Council of States to refuse the people’s initiative calling for an end to the controversial foreigners’ flat tax regime, based on the living cost rather than on the person’s wealth or income on 10 December 2013.
To continued support for the imposition, from 2016 measures aimed at strengthening the regime are to apply. After then the tax base for calculating direct federal and cantonal tax will be seven times the living cost, compared with five times as is currently the case. Further, concerning direct federal tax, a minimal taxable income of CHF400, 000 will apply.
