Insights
TAX & BUSINESS
Parliament passes tax changes
National Council and Federal Council have passed the Federal Renovation Measures Act 2025 to increase tax revenues in the short term. The changes listed below as examples mostly came into force at the beginning of April 2025.
VAT on photovoltaic modules
The zero VAT rate for supplies, intra‑Community acquisitions and imports as well as installations of photovoltaic systems will no longer apply. For contracts concluded before 7 March 2025, the zero rate remains applicable until 1 January 2026.
Motor‑related insurance tax on electric cars
Since 1 April 2025, electric vehicles are no longer exempt from the motor‑related insurance tax. Exempt are electrically‑driven mopeds with a power of up to four kilowatts; for non‑exempt electrically‑driven motorcycles the insurance tax is calculated on the basis of engine power in kilowatts. The calculation of the motor‑related insurance tax for electric cars will from now on be based on engine power and the vehicle’s own weight. In addition, the rate for plug‑in‑hybrid cars (i.e. with an externally rechargeable hybrid drive) is adjusted, resulting in a higher tax burden.
Income tax top marginal rate
The top rate of 55 % for income portions exceeding EUR 1 million is extended for a further four years until and including 2029.
Energy crisis contribution for electricity and energy crisis contribution for fossil fuels
The energy‑crisis contribution for electricity is extended until 1 April 2030. The collection periods each run from 31 March to 1 April of the following year. Moreover, the contribution rate is increased from 90 % to 95 %, while the revenue ceiling is reduced from EUR 120 per megawatt hour to EUR 90. For installations commissioned after 1 April 2025, a revenue ceiling of EUR 100 per megawatt hour applies. The energy‑crisis contribution for fossil fuels is extended until the calendar year 2029.
Betting levy
The betting levy is increased from 2 % to 5 % of the stake. The adjustment came into force on 1 April 2025 and aims to align the tax burden in the gambling sector.
Tobacco tax
The absolute amount of the minimum excise duty on cigarettes is raised to EUR 175 per 1,000 units. The tax on heated tobacco is also increased to align its fiscal treatment with that of cigarettes.
The zero VAT rate for supplies, intra‑Community acquisitions and imports as well as installations of photovoltaic systems will no longer apply. For contracts concluded before 7 March 2025, the zero rate remains applicable until 1 January 2026.
Motor‑related insurance tax on electric cars
Since 1 April 2025, electric vehicles are no longer exempt from the motor‑related insurance tax. Exempt are electrically‑driven mopeds with a power of up to four kilowatts; for non‑exempt electrically‑driven motorcycles the insurance tax is calculated on the basis of engine power in kilowatts. The calculation of the motor‑related insurance tax for electric cars will from now on be based on engine power and the vehicle’s own weight. In addition, the rate for plug‑in‑hybrid cars (i.e. with an externally rechargeable hybrid drive) is adjusted, resulting in a higher tax burden.
Income tax top marginal rate
The top rate of 55 % for income portions exceeding EUR 1 million is extended for a further four years until and including 2029.
Energy crisis contribution for electricity and energy crisis contribution for fossil fuels
The energy‑crisis contribution for electricity is extended until 1 April 2030. The collection periods each run from 31 March to 1 April of the following year. Moreover, the contribution rate is increased from 90 % to 95 %, while the revenue ceiling is reduced from EUR 120 per megawatt hour to EUR 90. For installations commissioned after 1 April 2025, a revenue ceiling of EUR 100 per megawatt hour applies. The energy‑crisis contribution for fossil fuels is extended until the calendar year 2029.
Betting levy
The betting levy is increased from 2 % to 5 % of the stake. The adjustment came into force on 1 April 2025 and aims to align the tax burden in the gambling sector.
Tobacco tax
The absolute amount of the minimum excise duty on cigarettes is raised to EUR 175 per 1,000 units. The tax on heated tobacco is also increased to align its fiscal treatment with that of cigarettes.