Improvements To Expatriate Ordinance

On January 16 2015, the Federal Department of Finance (FDF) published the revised wording of the Expatriate Ordinance (ExpaV, SR 642.118.3) which will enter into force on January 1 2016. The new ExpaV confirms Switzerland as an attractive place for employees from abroad, due to the higher enforceability of the deductions provided for in the ExpaV. According to the revised ExpaV, the following amendments may be considered the main changes compared to the existing law.

Expatriate status

The revision of the ExpaV leads to a more narrowly defined scope of covered expatriates. To qualify as expatriates in the technical sense of Swiss tax law, both key employees and specialists are required to work in Switzerland on an assignment basis. This is defined as an activity limited to five years and requiring the employee's intention to return to their prior place of residence after the assignment. Individuals qualifying as expatriates as per January 9 2015, under the terms of