Switzerland is planning changes to the tax deductions to which expatriates are entitled, as a result of recommendations by a working group set up for the purpose. A revision to the legislation would involve changing the definition of an expatriate so that it refers to an employee in a position of leadership or a specialized professional expert assigned to Switzerland on a temporary basis from a foreign employer. This definition would then exclude any foreign employee who is working under a fixed term contract in Switzerland.
Under changes to the tax rules the deduction in respect of housing costs would only be given where a permanent residential property is owned by the expatriate rather than rented. A deduction for school fees would only be allowed where the fees related to a foreign language private school. A deduction would however still be given for the employee’s costs of moving house.
