Swiss Corporate Tax Rates Remain Low Amid Global Shifts

Swiss Corporate Tax Rates Remain Low Amid Global Shifts

Thu, May 23rd 2024

Switzerland maintains competitive corporate tax rates, but faces new challenges from global tax policies.

Keystone/Francois Mori

The tax burden for Swiss companies remains low, with an average profit tax rate of 14.6%, unchanged from last year, according to KPMG’s “Swiss Tax Report.” Despite this stability, the role of low taxes in international competition has diminished.

While Switzerland’s tax rates are favorable compared to neighboring countries, the global minimum tax of 15%, effective since early 2024, challenges competitiveness. Eight cantons adjusted their rates, with Aargau and Bern reducing taxes, while Schaffhausen and Geneva increased them.

In response to new global tax rules and international subsidy trends, Swiss cantons are exploring credits and government support measures. For instance, Graubünden plans tax credits for job creation and climate initiatives starting in 2025, and Zug will return additional minimum tax revenue to the economy and population from 2026.

Wealthy individuals in Switzerland also benefit from reduced tax rates, with the highest incomes taxed at 32.73%, down from 33.45%. Schwyz, Zug, and Nidwalden have the lowest rates, while Geneva, Vaud, Bern, and Basel-Landschaft have the highest.

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