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What are the deductions that you can use in your tax return in Switzerland?

Deductions is the main lever which help on reducing the bill of taxes.

Professional Expenses:

  • Transportation to the workplace.
  • All the meals that you have to eat outside.
  • Training and education costs.
  • Other work-related expenses, spending on reference material, specialised workplace clothing, necessary equipment.
  • A very important point is also the flat deduction for the professionalfees. A 3 % reduction from your taxable income. There is a min of 2,000 CHF and a max of 4,000 CHF.

Health Fees:

Health Insurance premiums: The amount paid to the health insurance to be covered, is deductibleÞ Health Costs: the amount you paid related to health which the insurance didn’t cover.

Alimony payments

In case that you are divorced from your ex-spouse and paying for your children, then the same amount can be deducted

Childcare:

If your children are in childcare then the amount paid for that can be deducted. For this there is a limit and limits may be different based on the canton.

3rd Pillar Investment:

Third pillar is one of the main reduction in taxes. The amount deductible from the taxes is decided each year. For the current year the amount is 6,826 CHF. Important to note is that once you retire and make the withdrawal from the 3rd pillar, the amount need to be the full of it and then you will be taxes on your withdrawal.

Mortgage:

Mortgage payments are deductible from taxable income. In Switzerland is very common that the houses that people live in are not paid but in mortgages for long time. Having a mortgage has a tax benefit.

Expenses related to your house:

Investment made into your house because of renovating or saving energy or environment are deductible. But there are mins amount that you need to invest in order to claim the benefit. But in the other side you have the maximum amount which you can claim as there is a ceiling.

Donations:

Donations made to charities within Switzerland. The cap is at 20% on your taxable income. Donations to swiss political parties up to 10,000 CHF. Donations to family members.