Income tax – deductibility of Geneva mandatory maternity insurance in the canton of Vaud

Yet another tax charge where this deduction has been refused 😡 Yes, it's only a few tens of francs, but it's the principle of the thing.

The legal situation is clear:

The principle: Art. 25 LIFD + Art. 9 para. 1 LHID + Art. 29 LI-VD: Net income is calculated by deducting general deductions and expenses mentioned in Articles 30 to 37 (Art. 29 LI-VD) from the total taxable income.

More specifically: Art. 33 para. 1 let. f LIFD + Art. 9 para. 2 let. f LHID + Art. 37 para. 1 let. f LI-VD: Deducted from income [...] are premiums and contributions paid under the regulations on loss of earnings allowances and provisions on compulsory unemployment and accident insurance (Art. 37 para. 1 let. f LI-VD).

Art. 33(1)(f) of the LIFD provides for the full deduction of «premiums and contributions paid under the regulations on loss of earnings insurance and mandatory unemployment and accident insurance», i.e. social insurances, other than AHV-IV (f.d. (d)), that are linked to gainful employment, this list being exhaustive (Federal Supreme Court, judgment of 24 May 2011, 2C_36/2011). In this context, the deduction could be considered an organic deduction (costs of earning income) necessary for obtaining income from gainful employment. Its scope extends to contributions paid by employees and the self-employed under federal regulations on loss of earnings insurance (Art. 27 LAPG) as well as to those paid under supplementary cantonal regulations (Art. 16h LAPG), such as the Geneva Act of 21 April 2005 establishing maternity and adoption insurance (LAMat-GE) (cf. Ms. Gladys Laffely-Maillard, in Commentary LIFD, 2nd ed., Basel 2017, § 77 ad Art. 33).

Not including deductions for loss of earnings benefits at the cantonal level would lead to refusing the deductibility of all cantonal insurance policies. Refusing a cantonal deduction from a canton other than the canton of residence, while those from the canton of residence are allowed, would furthermore be discrimination prohibited by the federal (Art. 8 para. 2) and Vaud cantonal (Art. 10 para. 2) constitutions.

I'm not asking much of the tax authority: just to apply the law. And one more small thing: spontaneously.

ACI-VD practice