Switzerland

Details

  • Service: Tax, International Private Client Services, Legal, Succession Planning / Private Clients
  • Type: Business and industry issue
  • Date: 2/1/2012

Lump-sum Taxation - Quo vadis? 

Foreign citizens may under certain conditions opt for the so called lump-sum taxation. In case of a lump-sum taxation, the tax basis is not determined based on the actual world wide income, but generally based on the annual living expenses, whereas certain minimum amounts must be taken into account.
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In order to improve the tax equity and for a better acceptance by the population, the Swiss Federal Council intends to tighten the conditions of the lump-sum taxation. The Federal Council has, in particular, suggested to introduce a minimum tax basis for the direct federal tax of CHF 400 000.

 

Irrespective of these suggested new federal rules, popular initiatives for the abolition of the lump-sum taxation on cantonal level were launched in several cantons. In view of the acceptance of such initiatives in the cantons of Zurich in 2009 and in the canton of Schaffhausen in 2011, most cantons have already tightened or are considering to tighten the conditions for the lump-sum taxation.

 

German and French versions of the publication entitled "Chancen und Risiken rechtlicher Neuerungen 2011/12" may be ordered from Schulthess Verlag.

 

Publication in German.
 

Opportunities and Risks of Legal Changes 2011/2012

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The yearly published book «Chancen und Risiken rechtlicher Neuerungen» provides an overview of key developments in the Swiss law.

International Private Client Services

KPMG's International Private Client Services team renders services to a discerning private clientele. Our integrated service line provides you with tax, legal and wealth controlling services.

Succession Planning / Private Clients

The classic instruments for regulating successions are wills, succession agreements and marriage contracts. These instruments must be supplemented or replaced by other measures to safeguard the transfer of assets to the next generation.