Switzerland: New package of tax incentives (canton of Basel-City)

Highlights of new tax incentives

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June 13, 2025

The electorate of the canton of Basel-City on May 18, 2025, voted in favor of a new package of tax incentives, including enhanced depreciation for fixed assets related to research and development (R&D) and deductions for expenses related to clinical trials. The law is expected to become effective in 2025.

Starting January 1, 2026, Basel-City will also increase its cantonal corporate income tax rate to 8.5% for profits over CHF 50 million, while profits below this amount will continue to be taxed at 6.5%. This new tax rate will be in effect for 10 years.

Read a June 2025 report prepared by the KPMG’s EU Tax Centre

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