Gastronomy Federal Council against generally tax-exempt restaurant tips

The Federal Council does not want to generally exempt tips in the hospitality industry from tax. It is recommending the rejection of a motion from the Center Party calling for such an exemption for tips. Gastrosuisse regrets this stance.

According to the motion submitted by National Councillor Vincent Maitre (center/GE), tips paid in the hospitality industry should no longer count towards the relevant salary. This would mean that neither income tax nor social security contributions would be due on these amounts. Around forty council members have co-signed the motion.

In the past, tips were often left on the table after a meal in a restaurant, but today they are increasingly paid by card together with the bill. This makes it easier to track tips, writes Maitre.

If the federal government adapts the rules on tips as announced, the regulation could lead to much more bureaucracy for businesses. The Federal Council rejects the demand, as it wrote on Thursday.

At present, tips only count as income for tax and social security deductions if they make up a significant proportion of wages. In order to be counted as wages, tips must be verifiable. This practice has proven its worth and no new rules are expected in the short term.

According to the Federal Council, the general exemption of tips from the obligation to pay contributions and tax would be an incentive to pay staff more through tips, and employees would be less socially protected. The Federal Council also does not want a special regulation for the catering industry. It warns of demarcation problems.

Gastrosuisse regrets this stance. Tax-free tips would mean legal certainty and eliminate "current ambiguities" and injustices, the association wrote. Tips, which depend on the location, business and guest, should not be included in the wage system, but should remain a voluntary recognition.

SDA