Wed, Mar 20th 2024
Zug’s 2023 state accounts surpass expectations, largely driven by robust corporate tax income.
The 2023 state accounts of the Canton of Zug closed even better than budgeted. This was mainly due to high income from corporate income tax.
According to a statement from the Zug Finance Directorate on Wednesday, the income statement shows expenses of CHF 1.698 billion and income of CHF 2.159 billion.
This resulted in a profit of 461 million francs. A profit of CHF 247 million was budgeted.
The expenditure side also contributed to the improvement of CHF 214 million thanks to strict cost discipline. However, the lion’s share came from income, which was 201 million francs higher than budgeted.
Zug was able to benefit from high corporate profit tax payments in 2023. Fiscal income from legal entities and the cantonal share of direct federal tax were well above budget at around CHF 155 million.
The Zug-based companies proved to be very robust last year and were able to increase their profits.
In addition, the OECD minimum tax cast its shadow ahead. Various companies had realised profits prematurely by releasing tax-effective reserves due to changes in international tax law that were taking shape, the tax authorities announced.
The canton of Zug invested a net CHF 123 million in 2023, almost CHF 8 million more than budgeted. The self-financing ratio amounted to 437.7 percent.
Zug was therefore not only able to finance its investments with the funds generated in 2023, but also increase its liquidity.
The Canton of Zug’s equity increased by CHF 431 million last year. It amounted to CHF 2.35 billion at the end of 2023.
©Keystone/SDA
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