General

Increase in VAT rates in connection with supplementary AHV financing

New VAT rates will apply from January 1, 2024. The standard rate will increase from 7.7 % to 8.1 %. The reduced tax rate will increase from 2.5 % to 2.6 % and the tax on accommodation services (special rate) will increase from 3.7 % to 3.8 %.

The adjustment of VAT rates is accompanied by an update of the balance and flat-rate tax rates by sector and activity.

You can find detailed information on the consequences of the changeover in our article:

https://www.gfeller-partner.ch/news/erhohung-der-mehrwertsteuersatze-per-1-januar-2024

Abolition of the tax exemption for electric cars in the automobile tax

From January 1, 2024, electric cars will be subject to the 4% automobile tax. The reason for the abolition of the tax exemption is the rapid increase in imported electric cars in recent years and the resulting tax losses, which have been estimated at two to three billion Swiss francs for the years 2024 to 2030. The tax calculation is based on the import price, not the retail price.

Cantonal vehicle taxes must be distinguished from the federal vehicle tax. Here, electric cars continue to benefit from any existing concessions in the canton of registration. In the canton of Berne, for example, the standard tax for passenger cars in energy efficiency categories A and B is reduced by 40% (energy efficiency category A) or 20% (energy efficiency category B) for the first four years from the first registration.

Legal entities

Introduction of minimum taxation for large corporations

The OECD (Organization for Economic Cooperation and Development) minimum tax rate was introduced in Switzerland on 1 January 2024 - in line with a large majority of EU member states and other important industrialized countries. The additional tax of at least 15 % will be levied on large, internationally active corporate groups with a turnover of more than 750 million euros from January 1, 2024.  

Abolition of industrial tariffs

As part of the "import facilitation" package of measures, the Federal Council decided to abolish industrial tariffs, i.e. customs duties on industrial products (all goods with the exception of agricultural products) as of January 1, 2024. It is hoped that the abolition of customs duties will strengthen Switzerland as a business and industrial location and reduce barriers to trade. Consumers will also benefit from the measure, as customs duties were previously also applied to imports of various consumer goods, such as cars, bicycles, personal care products, household appliances and clothing. In sectors with functioning competition, the savings are passed on to consumers. The transfer is checked by means of monitoring.

‍Naturalpersons

New energy-saving measures in the canton of Bern

Photovoltaic systems and solar thermal systems are exempt from official valuation from January 1, 2024 (previously only applied to rooftop photovoltaic systems). These systems are now valued as movable assets at 20% of their acquisition value. 

From January 1, 2024, the consumption of energy generated by photovoltaic and solar thermal systems will no longer be considered own use and will not be included in the imputed rental value (previously only applied to photovoltaic systems). The proceeds from the sale of self-generated electricity will also remain tax-free to the extent of own use (so-called "net principle"). In practice, a de minimis limit will be introduced to simplify the assessment. 

For both new and existing buildings, the investment costs for photovoltaic and solar thermal systems can be deducted as maintenance costs from January 1, 2024. Up to and including tax year 2023, only investments in existing buildings are considered maintenance costs. Other energy-saving measures can still only be deducted on existing buildings.

Increase in the deduction for third-party childcare in the canton of Bern

Costs for proven third-party childcare of up to CHF 16,000 will be deductible in the canton of Bern from January 1, 2024. The maximum deduction up to and including tax year 2023 was CHF 12,000. For direct federal tax, the maximum deduction is now CHF 25,500 per child per year.  

The requirements for claiming the deduction (proof of third-party care costs, children before the age of 14 and living in the same household, causal connection) remain unchanged.

Relevant cantonal tax base for withholding tax in the canton of Bern

For cantonal tax, the tax base for withholding tax is now set at the tax base for the current year instead of the previous year. For municipal tax, the weighted average of the tax rates of the previous year of the municipalities with persons subject to withholding tax is decisive.