Switzerland: 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.

• 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