News Taxes

Zug: Public votes “Yes” to the 8th partial revision of the Zug Tax Act

Last Sunday, voters in Zug clearly approved the 8th partial revision of the Zug Tax Act with a Yes vote of 72.3%. The following changes will therefore apply from the 2024 tax year:

Increase in childcare deductions:

Third-party childcare deduction (up to and including the age of 14) will be increased from CHF 6'000 to a new maximum of CHF 25'000
Self-care deduction (up to and including the age of 14) will be increased from CHF 6'000 to a new maximum of CHF 12'000

This means that at least CHF 24'400 (including the general child deduction of CHF 12'400) can now be deducted per year for each minor and adult child in education. For children up to the age of 14 who are looked after by a third party, the maximum deduction is CHF 37'400 (including the general child deduction of CHF 12'400). Due to the abolition of third-party and personal care costs for children aged 15 and over, the additional child deduction will be increased to CHF 12'000 (from CHF 6'000).

Reduction in wealth tax and adjustment of tax-free amounts

The wealth tax rate will generally be reduced by 15% and the maximum rate will now be 1.7‰ (instead of 2‰). The tax-free allowances are doubled and now amount to CHF 200'000 for single persons, CHF 400'000 for married persons and CHF 100'000 per minor child.

Selective adjustments to the income tax rate

Income from CHF 65'000 (single persons) and CHF 130'000 (married persons) in particular will benefit from the "smoothing" of the income tax rate. The maximum tax rate is only reached at a significantly higher income.

Indefinite retention of the increased personal deductions from 2021 to 2023

The increase in personal deductions from the COVID-19 pandemic of CHF 11'600 (instead of CHF 7'100) for single persons and CHF 23'200 (instead of CHF 14'200) for married persons will remain in place indefinitely.

Higher capital tax allowance for associations, foundations, corporations and similar groups of persons as well as other legal entities

The tax-free amount is now set at CHF 200'000 (from CHF 80'000), with smaller and medium-sized associations in particular benefiting from this.

Adjustment of cantonal financial equalization and other

Zug municipalities will be released from the co-financing of Zug's payments to the National Fiscal Equalization. In addition, a number of adjustments have been made to federal law.

For any further questions or advice, please contact Remo Merz, Swiss certified tax expert, merz@fineac.ch.

WHAT we do is not unique, but HOW we do it.

Remo Merz, 27 November 2023