Switzerland’s Federal Department of Finance (FDF) has adjusted the Confederation’s direct federal tax rates and deductions for the 2012 tax year.
As regards tax deductions, the administration states that for the 2012 tax year, double income couples will be able to deduct up to CHF13,400 from their taxable income (compared to CHF13,200 or EUR10,963 currently).
This move aims to counter fiscal drift. Fiscal drift occurs when the government fails to adjust marginal income tax brackets in line with wage inflation, meaning more taxpayers are dragged into the higher income tax bands and thus suffer a tax increase.
