The new law extends allowances in the area of child care and rent: the childcare allowance (self and third party) is raised to CHF 6,000 and the rent allowance to CHF 4,000 (up to a net income of CHF 180,000). These increased allowances will ease the rental and living costs for families! SMEs benefit from a reduction in tax on earnings (basic tax now 3% instead of 4% for the first CHF 100,000 income). The tax on earnings will be reduced for all companies in stages to 5.75% of basic tax up until 2014, which will result in a tax burden on earnings of around 14.5% (instead of 15.4%). The implementation of the Federal Corporate Tax Reform II entails amendments to the federal law on a cantonal basis: the reduced tax on dividends is linked with new requirements: a minimum participation of 10% is now required and the reduction to the net asset value is waived completely. At company level a reduction in tax (participation deduction) applies for earnings from participations starting at 10% of the value of the participation or for a fair value of the participation of CHF 1 million. Further amendments affect harmonisation with the federal requirements (replacement, deferment of liquidation tax in the event of the division of an inheritance or the transfer of real estate from company assets to private assets).