Lump-sum tax


A lump-sum tax is a special way of taxation, based on a fixed amount, rather than on the real circumstance of the taxed entity.
If the lump-sum tax is the same for all taxpayers, it is a poll tax.

Description

It is one of the various modes used for taxation: income, things owned, money spent, miscellaneous, etc. It is a regressive tax, such that the lower the income is, the higher the percentage of income applicable to the tax.

Switzerland

Rich foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they do not work in the country. This taxation is based on estimated living expenses, rather than on real income and assets.
Seen as unfair, lump-sum taxation has been abolished in several cantons. However, a national abolition was rejected by referendum in 2014. At the end of 2016, 5,000 people were subject to lump-sum taxation in Switzerland.