On the 19 of May 2019, the Swiss electorate voted on the Federal Act on Tax Reform and OASI Funding.
Two elements that are essential for the prosperity of our country are an internationally competitive corporate taxation regime and a reliable pension system. In both these areas, reforms are urgently needed: corporate taxation must be adapted to remain attractive under changed international conditions and the Old Age and Survivors’ Insurance (OASI) needs additional funding in order to pay a growing number of pensions.
The Federal Council and Parliament want to create a competitive tax system that conforms to international requirements; they also want to safeguard the OASI pension system. Tax privileges for companies that mainly operate internationally will be abolished. In future, all companies will in principle be subject to the same rules on taxation. There will be tax incentives for investments in research and development. The cantons will receive additional money from the Confederation in order to implement these proposals according to their needs and to mitigate potential effects on their cities and communes. Many cantons want to reduce corporation taxes in order to remain attractive to businesses. These tax reductions are not part of this bill, but are closely related to it. The federal and cantonal tax measures will lead to a short-term fall in revenues of around CHF 2 billion a year (see “In detail”). Meanwhile, the OASI fund will receive around CHF 2 billion more each year to help safeguard pensions.
Last modification 11.07.2022