Referendum in Ticino: new facilities for taxpayers

Last June 9, the people of Ticino voted on an amendment to the 1994 Tax Law, thus avoiding a 3 percent increase on taxes from 2023.

The approved reform is beneficial and provides certain concessions for taxpayers. Specifically:

- Linear reduction of income tax rates by 1.667% from 2024.
- Increase in deductions for other business expenses (to the flat amount of CHF 3,000).
- Reduction of the top rate for inheritance and gift tax, favoring new family models and business transfers (with reduction of the top rate for concubines and other parental figures by affinity from 41% to 15.5%)
- Capping the rate on pension plan capital benefits at 3%, preventing the departure of good taxpayers outside the canton
- Reducing the maximum cantonal tax rate to 12% for individuals, improving the canton's position in intercantonal tax competition.

Implementation of the Reform thus mitigates the effects of the cantonal tax rate hike and encourages the arrival of new taxpayers. In addition to the immediate benefits, the proposed changes to the Tax Law stimulate cantonal economic growth in the long run by increasing overall tax revenues to be allocated to public works and services.

Our staff remains available for clarification.