Bern Tax Barometer – Vaud’s “yes” vote increases pressure on Bern to act

With a maximum corporate income tax rate of 20.54%, the Canton of Bern ranks last in the inter-cantonal comparison in 2026 – around six percentage points above the Swiss average of 14.43%, which remained virtually unchanged year on year.

From 2029, the canton plans to provide legal entities with annual tax relief of CHF 60 million through a further reduction in the tax multiplier. Together with the reduction in effect since 2024, the annual revenue shortfall will amount to CHF 100 million. “Given that Bern still has the highest regular corporate income tax burden in Switzerland, the planned relief will not be sufficient to move the canton into the middle of the inter-cantonal ranking,” says Frank Roth, Head of Tax at KPMG Bern. Pressure to act is also increasing because other cantons are using additional revenue from the OECD minimum tax to introduce new support instruments, while Bern has so far refrained from taking further measures.

This makes the existing STAF instruments all the more important. Research-intensive companies can significantly reduce their corporate income tax burden through the additional R&D deduction and the patent box. When the STAF measures are used to their full extent, the corporate income tax rate for research-intensive companies in the Canton of Bern falls to 12.05%, around 8.5 percentage points below the regular rate. To date, however, only around 200 companies in the Canton of Bern claim STAF relief. The additional R&D deduction is particularly attractive for companies subject to the minimum tax, as it may qualify as a “Qualified Tax Incentive” and allow corporate income tax rates below 15%.

“The patent box and the additional R&D deduction help innovative companies reduce their tax burden substantially. The fact that only around 200 companies make use of these measures highlights the need to raise awareness of the instruments,” says Henrik Schoop, Director of the Trade and Industry Association of the Canton of Bern.

According to CRIF, 38,081 companies relocated their registered offices within Switzerland in 2025, around one fifth of them to another canton. Bern recorded a net outflow of 117 companies, primarily to Solothurn (75), Zurich (63) and Zug (50). “The outflow of companies underscores the need for action. To safeguard jobs, investment and prosperity over the long term, Bern needs an updated economic strategy with fresh impetus for the business location,” says Henrik Schoop.

The importance of larger companies to the cantonal budget is also reflected in the distribution of the tax burden: almost two thirds of legal entities pay virtually no cantonal tax, while 21% of legal entities account for more than 98% of the cantonal corporate income tax burden.

With a maximum personal income tax rate of 40.85%, the Canton of Bern is well above the Swiss average of 33.04% and ranks fourth from last in the inter-cantonal comparison. The tax burden, particularly for high earners, is therefore higher than in most other cantons.

The tax law revision planned from 2027 will provide relief for low- and middle-income earners, while taxation of high incomes will remain unchanged. Planned measures include adjustments to the income tax rates, higher social deductions and a reduction in the cantonal tax multiplier. These changes are expected to result in average relief of CHF 250 per person. While the HIV welcomes the relief in principle, it does not consider it sufficient to improve the canton’s tax competitiveness.

“In Bern, it is often argued that more far-reaching tax relief is not politically feasible. The vote in Vaud on 27 September 2026 proves otherwise. Anyone seeking to strengthen the business location should have the courage to put more ambitious tax reforms to the electorate,” says Henrik Schoop. Support of around 54% for the tax cut in Vaud shows that tax competitiveness can also secure a majority at the ballot box.

The comparatively high tax burden also affects people’s choice of residence. Many employees work in the canton but live elsewhere. This is reflected in the commuter balance: in 2024, 63,573 people commuted into Bern and 39,584 commuted out of the canton. The net balance of 23,989 people was 1,191 lower than in the previous year. As a result, the canton and municipalities lose an estimated well over CHF 150 million in tax revenue each year.

“The decline in the commuter balance is encouraging. Nevertheless, the canton’s tax attractiveness remains a challenge: companies continue to report difficulties in recruiting specialist and management staff, while high-income earners often choose to live outside the canton,” says Henrik Schoop.