Individual taxation: a new tax regime for households and entrepreneurs
This weekend's vote marks an important turning point for Swiss taxation. The introduction of individual taxation, to be implemented by 2032 at the latest, will put an end to the principle of joint taxation for married couples. Beyond the political debate, this reform opens a new phase for household financial and tax planning, particularly for dual-income couples.
This weekend's vote marks an important turning point for Swiss taxation. The introduction of individual taxation, to be implemented by 2032 at the latest, will put an end to the principle of joint taxation for married couples. Beyond the political debate, this reform opens a new phase for household financial and tax planning, particularly for dual-income couples.
A long-awaited reform with tangible consequences
One of the main objectives of individual taxation is to eliminate the penalty on second incomes. In many households, the switch to separate taxation should make it more attractive to take up or increase work, particularly for those working part-time.
A new framework for wealth planning
The reform goes well beyond income tax. It alters important balances in pension provision, income structuring and long-term wealth planning.
In practice, this means that many households will need to reassess:
- The distribution of income between spouses
- Individual and occupational pension strategies
- Trade-offs between salary and dividends for entrepreneurs
- As well as certain existing structures (holdings, real estate, etc.).
In other words, individual taxation calls for a more comprehensive assessment of the couple's financial situation, not just a comparison of tax rates.
Beware of side effects
As with any structural reform, there will be beneficiaries and more complex situations. Couples with highly asymmetrical incomes or those with sophisticated wealth structures will need to carefully analyse their new tax position.
A purely arithmetic approach would be simplistic: future choices will have to take into account taxation, pension planning, inheritance and life goals.
In conclusion
- Individual taxation represents a major change in the Swiss tax framework. It creates new opportunities, but above all calls for a structured review of one's personal and business situation.
- More than ever, a coordinated approach to taxation, wealth and professional strategy is essential to transform this legal change into a real long-term lever.
- It remains to be seen what impact the future 1.7 million additional tax returns will have on the speed of the taxation process.
Author: Emilien Gigandet, Executive Director - Forvis Mazars in Switzerland
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