Some senators raised serious concerns about certain amendments that were previously adopted by the Lower House to cover additional expenditures, such as the raise of the minimum wage. See our earlier website post here for more background information on these amendments.  

These senators hold the view that speed took precedence over sound reasoning and fear the economic impact of these tax measures. Before voting they explicitly requested the government to investigate alternatives for the amendments adopted by the Lower House being the abolishment of the tax-free share repurchase facility as of 1 January 2025 and, as of 1 January 2024, the further scaling back of the 30% regime for incoming expats, the increase of the bank levy rates and the increase of the personal income tax rates.

The current caretaker government acknowledged these concerns and promised to come up with alternatives for these measures in spring 2024 and to incorporate these in the tax plans to be presented on Budget Day 2024. This implies that the above measures might either be amended or, as far as the repurchase facility is concerned, be reconsidered.

It should however be noted that although the current caretaker government made a firm promise to look for alternatives for these now adopted measures, a new government might be in place by then and hold a different view.

We will keep you informed on further developments. Should you have any questions with respect to the above, please contact your trusted adviser.