06.01.2020 - The Swiss tax system is characterised by considerable tax autonomy of the cantons, which leads to intense tax competition between the cantons. The Confederation has only a limited right to levy taxes. This authority must be renewed by the people and the cantons. The existing financial regime is valid until the end of 2020. The new 2021 financial regime extends the right to levy direct federal tax and value added tax to the end of 2035.

In order to be able to keep pace with developments in society, the tax system also has to be continually adjusted. The Federal Act on Tax Reform and AHV Financing (TRAF) was clearly accepted by the electorate on 19 May 2019 with 66.4% of votes in favour.