On September 22, 2024, the electorate of the Canton of Lucerne voted clearly in favour of the revision of the tax law. The 2025 tax law revision will reduce the tax burden on families and companies while strengthening the competitiveness of the Canton. The tax law revision will come into force on 1 January 2025.
The main points are as follows:
Legal entities:
- Staggered reduction of the capital tax rate from the current 0.5 ‰ (simple tax without multipliers of e.g 350 % in Lucerne) to initially 0.25 ‰ (simple tax) by 2027 (while maintaining the relief for participations, group receivables, patents and comparable rights) and to 0.01 ‰ (flat-rate) from 2028.
- Increase of the patent box relief from 10% to 90%.
- Implementation of a legal basis for the future introduction of the research and development super deduction.
- Increase in the relief limitation from 20% to 70%.
Individuals:
- Increase in deductions for children, namely the general child deduction to CHF 8,000 (currently CHF 7,000 or CHF 7,500), the deduction for children up to the age of 14 cared for by the parents to CHF 2,000 (currently CHF 1,100) and the third-party care deduction to CHF 20,000 per child up to the age of 14 (currently CHF 6,100).
- Introduction of a social deduction of 14% on the amount by which net income is lower than CHF 50,000 (single) or CHF 80,000 (married).
- Reduction of the rate for capital benefits from pensions and insurance to 0.5 % (simple tax without multipliers of e.g. 325 % in Lucerne) for the first CHF 40,000 and 1.4 % or, presumably , 1% from 2028 for the rest (currently between 0.5 and 1.9 %).