All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Switzerland: Swiss cantons announce lower headline tax rates in anticipation of Swiss Corporate Tax Reform III

hess.jpg

kistler.jpg

Jackie Hess


Jacques Kistler

Switzerland is contemplating a comprehensive corporate tax reform – Swiss Corporate Tax Reform III – which would phase out certain tax regimes, such as the holding, mixed and domiciliary company regimes in the 2018 – 2020 timeframe and replace these regimes with a variety of other measures. The overriding objective of this comprehensive tax reform is to secure and strengthen the tax competitiveness and attractiveness of Switzerland as an international location for corporations.

Several measures to replace the holding, mixed and domiciliary company regimes that would accomplish the dual goals of tax competitiveness and international acceptance are being considered, in particular:

  • A licence box for income arising from the exploitation and use of intellectual property;

  • A notional interest deduction on equity; and

  • A general reduction of the headline corporate tax rate (effective combined federal/cantonal/communal rate).

Twelve Swiss cantons are now considering a reduction of their headline tax rate (effective combined federal/cantonal/communal rate). The following cantons already announced a reduction of their headline corporate tax rates: Vaud to 13.8%, Geneva to 13%, Neuchâtel to 15.6%, Fribourg to 15%, and Zug to approximately 12%.

In addition, the following cantons in Switzerland with a tax rate that already stands below 15% have stated they will, or are expected to, keep their low tax rates: Schwyz: 11.7 % (communities of Freienbach/Wollerau), Lucerne: 12.3% (11.3% in the lowest taxed community), Appenzell Ausserrhoden: 12.7%, Nidwalden: 12.7%, Obwalden: 12.7%, and Appenzell Innerrhoden: 14.3%.

As indicated above, the lowering of the headline tax rate is just one of several measures that are being contemplated to ensure the competitiveness and attractiveness of Switzerland for corporations once certain special tax regimes phase out in the 2018 to 2020 timeframe.

Jackie Hess (jahess@deloitte.ch)

Tel: +41 58 279 6312

Jacques Kistler (jkistler@deloitte.ch)

Tel: +41 58 279 8164

René Zulauf (rzulauf@deloitte.ch)

Tel: +41 58 279 6359

Deloitte

More from across our site

Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
This week the Biden administration has run into opposition over a proposal for a federal gas tax holiday, while the European Parliament has approved a plan for an EU carbon border mechanism.
12th annual awards announce winners
Businesses need to improve on data management to ensure tax departments become much more integrated, according to Microsoft’s chief digital officer at a KPMG event.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree