Tax & Legal

The daily allowance paid under the Swiss statutory accident insurance is a tax-exempt benefit comparable to sick pay under Book Five of the Social Code and is therefore subject to the progression proviso for taxpayers with unlimited tax liability pursuant to Section 32b (1) Sentence 1 Number 1 Lett. K of the Income Tax Act. This was decided by the Supreme Tax Court in a most recent judgment.

An ECJ advocate general has suggested that the court should rule that price rebates granted by manufacturing pharmaceutical companies on deliveries of pharmaceutical products to public health insurances and private health insurances must be treated equally for VAT purposes insofar as they both reduce the taxable basis for VAT.

The Supreme Tax Court has held that employer contributions to employee health insurance policies are tax-free if required by statute and the employee is unable to encash the benefit.