Switzerland Consults On Revised Rules For Expats

By ExpatBriefing.com Editorial 16 April, 2014

Switzerland has launched a three-month hearing on planned changes to the nation's ordinance governing expatriate tax deductions.

The revised ordinance would amend the definition of the term expatriate to be an employee occupying a leadership role, or with a professional specialization, sent to Switzerland temporarily by a foreign employer. Foreign workers on fixed-term contracts in the Confederation would fall outside of this definition.

The proposed legislation also newly stipulates that tax deductions for housing costs would only be granted in future for permanent dwellings owned and not rented by expats. Furthermore, the text specifies that school fees for minors would only be tax-deductible if the costs relate to education received in a foreign-language private school. Moving costs would remain tax-deductible.

The proposed modifications to the ordinance are in line with working group recommendations. The working group was set up to review the current legislation, after the submission of two parliamentary motions (12.3510, 12.3560) that called for the expatriate tax breaks to be abolished. The Swiss Federal Council wants to maintain the tax deductions however, and has therefore agreed to adopt the working group's revisions, to restrict expats' access to the tax concessions, as a compromise.

Tags: Tax | Fees | Education | Legislation | Switzerland | Tax Breaks | Expats | Immigration | Investment | Property Investment | Working Abroad | Work | Invest | Working Abroad | Immigration | Investment | Working Abroad |

 





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