Selected legislative revisions as of January 1, 2024
Reform AHV 21
The reform to stabilise the AHV, which was approved by the people and the cantons, came into force on 1 January 2024. The reform includes both the amendment to the AHV Act and the federal decree on the additional financing of the AHV through an increase in VAT. When the reform comes into force, the retirement age for women and men will be standardised. The reference age (formerly "normal retirement age") for women will be gradually increased from 64 to 65. From 2025, the reference age will be increased by three months each year, meaning that standardisation will be completed by 2028. For women born in 1961, the reference age will therefore be 64 and three months, for women born in 1962 it will be 64 and 6 months, until the reference age of 65 ultimately applies to all women born in 1964 or later. The law provides for equalisation measures for the transition generation born between 1961 and 1969.
The AHV 21 reform also introduces more flexible retirement options. Previously, those who wanted to retire early could only draw their retirement pension either one or two years in advance. Now, the pension can be drawn from any month between the ages of 63 and 70. This means that it is now possible to draw the pension monthly in advance or defer it, which should facilitate the gradual transition to retirement. Also in contrast to the past, only part of the pension can now be drawn. The minimum amount for partial early withdrawal is 20 %, the maximum 80 %. The remainder is deferred.
Furthermore, the amendment to the law now offers the possibility of improving the retirement pension for people who continue to work and pay contributions after the reference age. Unlike before the revision, AHV contributions paid in after the reference age are now also taken into account, which means that contribution gaps can be closed.
The AHV 21 reform includes a federal decision to increase VAT in order to eliminate the deficit in the pension system. The standard tax rate was increased from 7.7% to 8.1%, the reduced tax rate for food and books from 2.5% to 2.6% and the special rate for accommodation from 3.7% to 3.8%. The interest rate applicable over time is determined by the time the service is provided. This means that the old interest rates remain applicable for services provided before 1 January 2024, regardless of whether the relevant invoices are not issued until 2024. The additional in-come will benefit the AHV in full.
Selective changes to foundation law
With the amendment to the law on 1 January 2024, various changes came into force that serve to modernise Swiss foundation law and make it more flexible. Under Art. 86a para. 1 of the Swiss Civil Code, founders now have the option of changing the organisation of the foundation as well as its purpose upon request or by means of a disposition upon death. Provided the or-ganisational change is provided for in the foundation statutes, founders can, for example, grant family members or representatives of organisations a right to a seat on the foundation board and abolish or create new bodies. In addition, a previously unalterable provision according to which the foundation's assets must be preserved or can be utilised can now be amended.
In formal terms, insignificant amendments to the foundation statutes can be amended more easily. It is sufficient if the amendments are objectively justified and do not affect the rights of third parties (Art. 86b ZGB). In addition, Art. 86c ZGB clarifies that amendments to the foundation statutes pursuant to Art. 85-86b ZGB do not require public notarisation.
Finally, the foundation supervisory complaint, which was previously recognised in practice but not expressly regulated by law, has now been enshrined in Art. 84 para. 3 of the Swiss Civil Code. The beneficiaries or creditors of the foundation, the founders or contributors as well as the former and current members of the foundation board are entitled to lodge an appeal, provided they can prove an interest in the lawful administration of the foundation in accordance with the foundation charter.
The creation of a clear legal regulation on the permissibility of appropriate remuneration for the activities of foundation board members without depriving the foundation of its tax exemption was missed. Further details can be found here: The new foundation law as of 1 January 2024 - New flexibilities and missed opportunities (staiger.law)
Mandatory climate report for large companies in Switzerland
At its meeting on 23 November 2022, the Federal Council adopted the Implementing Ordinance on Climate Reporting for Large Swiss Companies. The ordinance has now entered into force on 1 January 2024 and regulates reporting by companies on climate issues in accordance with Art. 964a CO as part of environmental issues in the context of non-financial issues in accordance with Art. 964b CO.
Large companies in Switzerland are now obliged to publish a climate report. This obligation applies to public limited companies, banks and insurance companies that employ at least 500 people and have a balance sheet total of at least CHF 20 million or a turnover of over CHF 40 million.
The published climate reports must disclose what impact the company's business activities have on the climate and what risks the company is taking through climate-relevant activities. In addition, the company must explain what reduction targets it has set for its direct and indirect greenhouse gas emissions and how it plans to realise them. In accordance with Art. 964c para. 2 no. 2 CO, the highest management or administrative body must ensure that the published re-ports remain publicly accessible for at least ten years.
Vehicle tax on electric vehicles
Electric vehicles have been exempt from a tax since the introduction of the automobile tax in 1997. An amendment to the Automobile Tax Ordinance (AStV) adopted by the Federal Council as of 1 January 2024 means that electric vehicles will now also be subject to the automobile tax. The tax exemption pursuant to Art. 1 para. 1 let. d AStV will be cancelled. In doing so, the Federal Council wants to counteract the decline in revenue from the motor vehicle tax and secure the deposits in favour of the National Roads and Agglomeration Transport Fund (NAF).
Abolition of industrial tariffs
Parliament had already laid the foundation for the abolition of customs duties on industrial products on 1 October 2021 by amending the Customs Tariff Act. The Federal Council scheduled the measure to come into force on 1 January 2024 in order to keep the transition costs for economic operators and the administration as low as possible. In Switzerland, industrial products include all goods with the exception of agricultural products (including processed agricultural products and animal feed) and fishery products. These products will therefore no longer be subject to customs duties when imported into Switzerland from 1 January 2024. Industrial duties were originally introduced to protect domestic industry from foreign competition. However, as these customs duties now primarily make the procurement of primary materials from abroad more expensive, they will be abolished from 1 January 2024 in order to strengthen Switzerland as a business and industrial location.