Swiss Tax News: Key Updates for 2025/2026

• by Shimanta Das
• August 9, 2026

Switzerland is set to undergo significant tax and social security changes in 2025/2026, impacting both employers and employees. These updates span a range of areas, including AHV reforms, work permits, CO₂ levy redistribution, teleworking, short-term employment certificates, and the EU Pay Transparency Directive. Staying informed and proactive is crucial for compliance and strategic planning.

One of the most notable changes is the gradual increase in the retirement age for women and the introduction of the 13th AHV pension from 2026. These reforms will affect payroll calculations and long-term financial planning. Additionally, new legal requirements for minimum wages, CO₂ levy, work permits, and the EU Pay Transparency Directive will require adjustments in HR and payroll processes. Employers should also note important updates regarding forms, certificates, and digital processes.

Starting 1 January 2026, there will be slight but important updates to several social contribution rates. For example, the Family Allowances (AF) contribution in the canton of Geneva remains solely the employer’s responsibility, with a rate of 0.09%. While other contribution rates remain unchanged, it is essential for employers to review their compensation structures to ensure compliance with local legislation and prepare for potential changes in 2026.

Furthermore, the ongoing Base Erosion and Profit Shifting (BEPS) 2.0 initiatives continue to shape the international tax landscape, and Swiss businesses must stay abreast of these developments to optimize their global tax strategies. EY Switzerland provides comprehensive insights and services to help navigate these changes, ensuring that organizations are well-prepared for the evolving regulatory environment.