Switzerland: Partial revision of cantonal tax law (Zug)

The Zug Cantonal Council adopted partial revision of cantonal tax law after two readings

The Zug Cantonal Council adopted partial revision of cantonal tax law after two readings

The Zug Cantonal Council in early July 2023, adopted the eighth partial revision of the cantonal tax law after two readings. The focus of the proposal is a tax relief for individuals.

The key elements of the tax reform are as follows:

  • Increased deductions for childcare
  • Reduction of the wealth tax rate by 15% while doubling the tax-free amounts
  • Partial adjustment of the individual income tax rates 
  • Continued retention of the increased individual (personal) deductions from the coronavirus (COVID-19) related tax measures

These tax reductions are intended to be financed through additional revenues from the planned OECD minimum tax for corporations. It is expected that the municipalities will not benefit from these additional revenues but, in return, will no longer be required to contribute to the National Financial Equalization Fund.

In addition, the Cantonal Council decided that the municipalities will receive individual solidarity contributions for the transition period 2024 - 2027 to compensate for the difference between the expected tax revenue shortfall of the tax bill and discontinued participation in the national fiscal equalization scheme.

The new code, at the request of the Cantonal Council, is subject to a public vote on 26 November 2023. The package is expected to take effect on 1 January 2024.

Read an October 2023 report prepared by the KPMG member firm in Switzerland


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