Switzerland: Cantonal tax law changes in response to Pillar Two global minimum tax
Several cantons have changed their tax rates in response to enactment of Pillar Two global minimum tax
Cantonal tax law changes in response to Pillar Two global minimum tax
Several cantons have changed their tax rates, or launched projects aimed at improving their attractiveness as a location, in response to enactment of the Pillar Two global minimum tax in Switzerland effective 1 January 2024. Read TaxNewsFlash
- The Canton of Schaffhausen, which had applied a corporate tax rate of less than 13.8% in 2023, introduced a progressive corporate tax rate from 2024. Profits higher than CHF 15 million will be subject to an effective tax rate (including federal taxes) of 15% from 2024.
- The Canton of Geneva raised its effective corporate tax rate (including federal taxes) from 14% to 14.7% and eliminated the municipal business tax in exchange.
- The Canton of Grisons submitted a draft bill for consultation that seeks to reward companies whose activities (1) increase added value created within the canton, (2) strengthen research, development, and innovation, or (3) improve environmental sustainability.
- The Canton of Zug announced its intention to support companies directly through a system of subsidies with extensive delegation powers afforded to the government council.
Read a May 2024 report prepared by the KPMG member firm in Switzerland
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