Last update: 17.09.2024 08:36
You can deduct professional expenses in connection with your salaried work from your taxes as a lump-sum deduction for professional expenses in 2023. The good news: the lump sum for professional expenses will increase in 2023 for direct federal tax due to higher inflation in Switzerland. We’ll tell you how much more you can save on taxes.
Read more: Flat-rate deduction for professional expenses 2023: Deductions for professional expenses will increaseWhat is the 2023 flat-rate deduction for professional expenses?
You can deduct expenses for your profession from your taxes.1 Specifically, as an employee, you may deduct from your income those expenses that are necessary to earn income in the same calendar year and that have a direct causal link to your income. You have the option of claiming the actual documented costs or flat-rate deductions for professional expenses. We have summarized many other deductions in a special article.
Why will the lump sum for professional expenses be increased from 2023?
Unlike other countries, Switzerland compensates for the consequences of cold progression in direct federal tax.2 The Federal Department of Finance (FDF) therefore checks annually how the national consumer price index has developed and whether tariff levels for direct federal tax and deductions for professional expenses need to be increased as a result. Incidentally, there is no provision for a reduction in the event of negative inflation. The index level on June 30 before the start of the new tax period is decisive for an increase. In the event of an adjustment, the amount is rounded up or down to CHF 100.
In 2012, the consequences of cold progression were last offset in 2012. This was based on an index level of 161.9 points, which had increased by around 2 % to 162.2 points by June 2021. For this reason, the FDF issued an ordinance on September 16, 2022 to offset the consequences of cold progression for natural persons with regard to direct federal tax.3 This will apply from January 1, 2023.
How high is the flat-rate deduction for professional expenses in 2023 for direct federal tax?
The FDF has published the deductions for direct federal tax for the 2023 tax year with all the details. The following table shows you the most important flat-rate deductions at a glance.
| Deduction for … | Applicable to | 2022 | 2023 |
|---|---|---|---|
| Insurance premiums | Married couple, with contributions to pillar 2 and 3a | 3’500 | 3’600 |
| Married couple, without contributions to pillar 2 and 3a | 5’250 | 5’400 | |
| Other taxpayers with contributions to pillar 2 and 3a | 1’700 | 1’800 | |
| Other taxpayers without contributions to pillar 2 and 3a | 2’550 | 5’400 | |
| per child and per person in need of support | 700 | 700 | |
| Party donations | 10’100 | 10’300 | |
| Vocational training/further training | 12’000 | 12’700 | |
| Two-earner | 50 % of the lower income, minimum/maximum | min: 8’100 max: 13’400 | 8,300 13,600 |
| Third childcare | maximum | 10’000 | 25’000 |
| Children | per child | 6’500 | 6’600 |
| Third party support | per person in need of support | 6’500 | 6’600 |
| Married | 2’600 | 2’700 | |
| Deduction from the tax amount per child | 251 | 255 |
Source: FTA, January 15, 2023
Summary of flat-rate deduction for professional expenses 2023
It is very pleasing that higher prices do not increase the tax burden for direct federal tax, but are offset by an adjustment to the rate brackets and flat-rate deductions. These deductions are automatically applied when you complete your tax return. The increase in the deduction for third-party childcare to a maximum of CHF 25,000 should provide significant relief in the household budget, especially for working families.
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- This is regulated by the Professional Costs Ordinance ↩︎
- This is enshrined in Art. 39 para. 2 of the Federal Act on Direct Federal Taxation ↩︎
- Ordinance on the compensation of the consequences of cold progression for natural persons with regard to direct federal tax ↩︎
Disclaimer
We have taken great care with the content of this article. Nevertheless, we cannot rule out errors and cannot guarantee that it is correct and complete. This article does not replace tax advice. We do not offer tax advice and recommend that tax issues are always clarified with a tax expert and/or the relevant cantonal tax administration. Any liability is rejected.
