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VAT accounts for 29.9% of total receipts, making it the most important source of receipts for the Confederation, together with direct federal tax. Domestic consumption is taxed. This includes the acquisition of domestic goods and services, as well as imports. Exports are not subject to VAT.
Direct federal tax accounts for 33.4% of total receipts. Together with value added tax, it is the most important source of receipts for the Confederation. Direct federal tax is levied on the income of natural persons and on the net profit of legal entities. The proportions of income tax and profit tax receipts are more or less balanced at 48% and 52%, respectively, of direct federal tax. The 2022 receipts are derived mainly from taxable income and profits from 2021.
Withholding tax accounts for 9.0% of total receipts. Withholding tax is designed as a safeguard tax for direct taxes and is intended to ensure that income from movable capital assets is taxed (especially dividends and interest income). The receipts arise from the difference between funds received and reimbursed (including the provision for refund requests still expected).
The consumption tax levied on petroleum and fuel, among other things, will amount to 6.0%. Overall, around three quarters of these receipts are earmarked for road transportation and aviation (60% of the basic tax and all of the surtax).
Stamp duty accounts for 2.6% of total receipts. Transfer stamp tax, which accounts for over 60% of stamp duty, is levied on purchases and sales of Swiss and foreign securities. The revenue from transfer stamp tax depends primarily on the volume of taxable securities turnover of Swiss securities dealers. The issue tax on the accumulation of net assets/equity fluctuates considerably, as it depends on the equity requirements of companies. On June 18, 2021, the National Council and the Council of States decided to abolish issue tax. Given the announced referendum against the proposal, it is assumed that the abolition will enter into force on May 1, 2022. The third component is the insurance premium stamp duty, which is collected on certain insurance premiums.
Tobacco duty accounts for 2.6% of total receipts. This duty is levied on domestically manufactured and imported tobacco products and substitutes. The revenue is used to co-finance the federal AHV contribution.
Other tax receipts consist essentially of transportation taxes such as the heavy vehicle charge and incentive fees such as the CO2 tax. They account for 9.5% of total receipts.
Nontax receipts account for 5.2% of total receipts. They include items such as the prepaid disposal fee and military service exemption tax, as well as further receipts from royalties and concessions and financial receipts, for example.
Extraordinary receipts account for 1.9% of total receipts. Starting in 2021, supplementary distributions by the Swiss National Bank (SNB; 1.3 bn) will be recognized as extraordinary receipts, thereby offsetting some of the coronavirus-related debt, which is shown in the debt brake's amortization account.
Development of selected 2022 receipts
in CHF mn and %
Total receipts are to reach 78.6 billion in 2022, and thus exceed the 2021 budget (75.8 bn) and the 2021 estimate (76.1 bn). The robust growth in receipts relative to the 2021 estimate can be attributed primarily to withholding tax and VAT.
Based on the estimate for 2021, receipts will grow by 3.3% in 2022, i.e. at a slightly slower pace than nominal GDP (+3.8%). This difference is chiefly due to tax reforms. Among other things, it is assumed that a component of stamp duty (issue tax) will be abolished from May 1, 2022. Without structural breaks, receipts would increase by 3.7%.
The 2022 budget is reckoning on VAT receipts of 23.5 billion, i.e. a rise of 3.6% relative to the 2021 estimate. The trend of VAT receipts is closely linked to economic growth (nominal GDP +3.8%). The AHV 21 reform is intended to stabilize old-age and survivors' insurance. To this end, the reform also provides for a VAT increase. It is currently assumed that VAT will be increased by 0.3 percentage points for this purpose from 2023 (in line with the decision of the Council of States).
Stamp duty receipts of just over 2 billion are expected in 2022. The planned abolition of issue tax as of May 1, 2022 (-180 mn) will be partially offset by a rise in transfer stamp tax (+55 mn) and insurance premium stamp duty (+10 mn).
The reduction in receipts caused by the tax relief for biogenic and renewable fuels will be offset by higher taxation of petrol and diesel oil from January 1, 2021 (+3.7 centimes up to December 31, 2028). A rise in receipts is assumed for the 2022 budget because of the economic recovery (+5.5% relative to the 2021 estimate). At the same time, the CO2 emission regulations for new passenger vehicles tend to lead to lower fuel consumption, thereby curbing receipt growth. The tax relief for biogenic fuels will expire at the end of 2023, which will lead to correspondingly higher receipts from 2024 onward.
Receipts will be higher than budgeted in 2021, as the limited travel activity in the first half of the year resulted in predominantly domestic purchases. In the 2022 budget year, receipts are expected to be lower (-120 mn) than in the 2021 estimate, as foreign purchases are likely to pick up again. An annual sales reduction of 2% is anticipated for the financial plan years, which corresponds to the long-term average.
Due to the economic uncertainty resulting from the COVID-19 pandemic, receipts plunged in 2020. Companies will probably pay out less in dividends in 2021 as well. Funds of around 30 billion are expected to be received. Assuming that 20% of that sum will not be reclaimed (according to the estimation model for provisions), receipts are estimated to be 6 billion in 2021. Since 2012, withholding tax budgeting has been based on a statistical procedure that takes account of the growth trend. 2022 receipts were estimated at 7.1 billion, based on the 2020 result and the separate estimate for 2021. For 2023 to 2025, it is assumed that receipts will grow in line with the economy. A 170 million reduction in receipts resulting from the reform to strengthen the debt market is taken into consideration from 2024 onward.
It is estimated that direct federal tax receipts will amount to 26.3 billion in 2022 (+0.9% vs. 2021 estimate). They can be broken down into income tax for natural persons (12.5 bn) and profit tax for legal entities (13.7 bn). Income tax receipts were higher than expected in 2020. In addition, the Tax Reform and AHV Financing Act (TRAF) came into force in 2020. As a result of the reform, dividend distributions are subject to higher taxation, which will lead to higher tax receipts in 2021 in particular (+3.1%). It is estimated that growth will be much weaker in 2022 as a result of the COVID-19 crisis, and is likely to reach 1.0%. However, government transfers to households (e.g. short-time working compensation) have stabilized household incomes.
Profit tax receipts are expected to climb by 12.4% in 2021 and 0.9% in 2022. The receipts recorded in the first few months of 2021, which are mainly from the 2020 tax year, were higher than anticipated. The largest profit tax payers, in the financial and pharmaceutical sectors, appear to be little affected by the crisis or not at all.
Development of receipts
in CHF bn and % of GDP
Total receipts of 78.6 billion are budgeted for 2022. Based on the estimate for 2021, total receipts will probably grow at a slightly slower pace than nominal GDP in 2022 (+3.3% vs. +3.8%). As receipts will grow roughly in line with the economy in subsequent years, the receipt ratio will remain stable at 10.3% from 2022.
Last modification 12.08.2021