Tax News January 2024

Dear partners,

The entire Uzunov Consulting Team sends you its best wishes for 2024.

As with every new year, we find it essential to inform you of tax updates and provide some advice for approaching your taxes with ease.

The year 2024 is no exception, with the tax landscape evolving as anticipated.

Here are the main changes for this year:

Changes in VAT Rates

The VAT rates will change on January 1, 2024. The VAT rate applicable to products and services will increase from 7.7% to 8.1%. The rate for basic necessities will rise from 2.5% to 2.6%, and hotel services will also see an increased rate, from 3.7% to 3.8%.

Changes related to Private Tax

1. Adult over 25 as Dependents (for Geneva)

Adult children over the age of 25 can now be considered as dependents if the following conditions are met together:

• The child is an apprentice or student during the calendar year;
• The child has a net wealth not exceeding 92,432 francs;
• The child does not earn income exceeding 16,197 francs (full charge) or 24,296 francs (half charge)

This change will not be reflected in the employer’s tax scale. Taxpayers concerned will therefore need to complete the DRIS form the following year.

2. Fair taxation of parents equally supporting their children (for Geneva)

From now on, if two single, divorced, or separated parents contribute equally to the care of their child, they will be able to benefit from an identical reduction in their tax burden. It’s essential that the alternating custody of the children is equivalent and that the expenses are shared equally.

The DRIS form will also be required for correction the following year.

Beyond an evolving tax framework, we can already provide some advice for approaching your tax declaration under the best conditions.

3. Request for the adjusted C tax scale

The adjusted C tax scale allows for a more accurate source taxation that corresponds more closely to your actual financial situation. This scale is available for anyone residing in Switzerland or abroad, married, with one or more children, and whose spouse earns income. The application for this scale can be requested at any time via the form available on the website of the Cantonal Tax Administration.

Our advice: set up a plan for advance tax payments

This option allows you to anticipate the payment of your taxes, thus avoiding interest

charges of 3% on the amount due from 31 December 2024.

This approach offers several advantages:

• Flexibility: adjust the installments online according to the evolution of your situation;
• Financial predictability: know your monthly obligations.

The request for installment payments can be made directly via the website of your cantonal tax administration.