REFUSAL OF THE INITIATIVE ON LUMP-SUM TAXATION REGIME - SITUATION AT A GLANCE
In October 2012, a federal initiative requesting the abolition of the lump-sum taxation regime for individuals in Switzerland was filed in. This initiative is a result of an important public debate in the last years in Switzerland on the abolition of such specific taxation regime (public discussion launched by the 2009 Zurich cantonal vote deciding to abolish the lumpsum taxation regime in this Canton).
The popular referendum on the federal initiative took place on 30 November 2014. The Swiss voters have turned down this initiative with a clear majority (59 % of the voters; Schaffhausen is the only Canton – out of the 26 Cantons – to accept the initiative). This important vote provides clarity and legal certainty for taxpayers who opted for this regime and future potential new applicants.
The purpose of this tax newsletter is to provide foreigners who intend to elect tax domicile in Switzerland with an overview of the legal framework of this attractive individual tax regime. The recent enacted amendments of the Swiss tax law regarding this method of taxation are also covered in this publication.