Global Daily Tax News, Swiss Upper House Debates Tax Changes For Married Couples, (Mar 7, 2025)

The upper house of Switzerland's parliament has begun discussing proposals to reform the tax rules for married couples.

Lawmakers narrowly agreed to discuss proposed reforms stemming from a popular initiative, which calls for married couples to have the option to be taxed as individuals, or jointly, depending on which results in the lowest tax burden.

The Government is instead urging adoption of its counterproposal, which would introduce independent taxation for married couples. Under the proposals, each partner would be required to file separate returns.

The Government has also proposed changes to the child deduction, including an increase in the allowance to CHF12,000 (USD13,500), up from CHF6,600. However, the allowance would be split equally among married couples, and non-earning married partner would no longer be able to claim their half of the child deduction under the reforms.

In total, the Government's proposed reforms would cost Switzerland CHF1bn in 2024.