Persons taxed on expenditure may not work in Switzerland. Since it is very difficult for the authorities to find out the global income or assets of such a person, tax is calculated based on living costs.
As of the end of 2012 5,634 persons were profiting from lump-sum taxation, the majority of them living in the cantons Geneva, Wallis and Ticino.
Across all three state levels (federal, cantons and municipalities), persons taxed on expenditure paid a total tax revenue of approx. 700 million Swiss francs in the year 2012 (without social contributions). The average tax revenue per person benefiting from lump-sum taxation was in 2012 approximately 120,000 Swiss francs. In addition to the tax revenues, the federal tax authorities estimate that 20’000 to 30’000 jobs are directly or indirectly connected to the lump-sum taxation. Especially structurally fragile regions benefit from lump-sum taxation and the overall economic profit may not be considered as insignificant.