Regarding individual income tax and wealth, the report proposes that the lower and middle tariffs will be adjusted in such a way as to make sure that the tax burden is the same as under the country previous law. Furthermore, the law may bring into affect an 8% tax rate, which has been advocated by various politicians.
Regarding corporate income tax, the report specifies that there must be a decoupling of the national interest deduction and the own capital interest deduction. It also stated that no loss carry forwards are generated by its own capital interest deductions and that the loss carry forward allocation is limited to a maximum 70% of the net profit.
Furthermore, the report suggests that the minimum income tax and the minimum capital levy be increased by CHF 1,800 (USD 1,950), as under the old tax law. The government said recently that it already proposed the figure when the report was first being drafted.
At the end of its release, the government said that the application of the new tax law has demonstrated the need to simply and to clarify individual provisions.
