On 1st January 2021 the grandfathering rules on individuals with lump-sum taxation rulings approved before 1st January 2016 will expire. This requires some actions in 2019 for individuals concerned.

New minimum thresholds

As of the 1st of January 2016 newly obtained lump-sum taxation rulings also known as "Pauschal" or "Forfait" contain new minimum income thresholds. This means that the minimum deemed income for direct federal tax purposes will be CHF 400’000. Most of the cantons introduced the same amount for cantonal and communal personal income tax purposes whereby only very few cantons introduced lower thresholds. In addition, all cantons are obliged as of 1st January 2021 to introduce a wealth tax on individuals subject to lump-sum taxation. For the so-called control calculation higher multipliers will be applicable too, i.e. seven times the deemed rental value or rent paid.

Grandfathering rules

The grandfathering rules gave individuals that had a lump-sum taxation ruling approved before 1st January 2016 a preferential treatment until 1st January 2021. Falling under these grandfathering rules allowed the individuals to keep the lower minimum thresholds for the deemed income tax basis and wealth tax basis and in certain cantons a non-taxation of their wealth.

What you should consider now

Should your lump-sum taxation ruling have been granted before 1st January 2016 you should consider whether your deemed income as agreed with the competent tax authorities is in line with the new rules. In addition, you are strongly recommended to assess whether your control calculation is affected by the new higher multipliers. Further, you should consider whether your lump-sum taxation ruling needs to be amended with the new minimum thresholds and whether all relevant facts and circumstances are disclosed with the competent tax authorities to avoid the invalidity of your lump-sum taxation ruling.


It is recommended that individuals concerned start the assessment of their situation already in summer 2019 to ensure that potential actions are completed before the expiry of the grandfathering rules.