Implementation of TRAF in the Cantons
We monitor developments and reactions in the individual cantons regarding the Steuervorlage 17 (SV17) / TRAF.
our newsletter
General overview Cantons
Tax measure of the Steuervorlage17 (SV17) / TRAF
The following table shows the implementation of the most important measures of the Steuervorlage 17 (SV17) / TRAF in the cantons:
Three variations have emerged in the cantons as to how the optional reduction in equity capital (EK) as defined in Art. 29 para. 3 StHG can be implemented:
- Reduction of the relevant EC by a fixed percentage
- Taxation of the relevant equity at a special rate
- Reduction in the ratio of the relevant EC to the total assets
Cantonal profit tax rates after implementation of the measures
Corporate tax consultancy
Canton of Aargau
19.12.2019
The referendum period has expired without a referendum being held. The amendments will come into force on 1 January 2020.
17.09.2019
The Grand Council has approved the amendment to the cantonal tax law. If no referendum is held, the cantonal tax reform can enter into force on 1 January 2020. The The referendum deadline is 19 December 2019.
28.08.2019
After the second round of consultations, the Grand Council's Commission for Economic Affairs and Taxation (EATC) continues to approve the amendment to the cantonal tax law. Doubts regarding deduction for research and development expenses have been eliminated. Consequently, no substantive changes were made to the Steuervorlage 17. After conditional approval by the Grand Council in September 2019, the cantonal reform will enter into force on 1 January 2020.
03.04.2019
At the end of March 2019, the Canton of Aargau's Grand Council Commission for Economic Affairs and Taxation (VWA) approved the revision of the Cantonal Tax Act. The commission's acceptance only required a review proposal. The only echo from the commission is the wish for more information in the second round of consultations regarding research and development expenditure. The Aargauers also have unanswered questions about the patent box - but this is due to a lack of information from the federal administration. Overall, however, the revision is balanced for the canton. Further consultations in the Grand Council are planned for summer 2019.
08.03.2019
As of 8 March 2019, the Aargau cantonal government submitted the dispatch on Tax Bill 17 / TRAF to the Grand Council. The cantonal implementation is to be as balanced as possible and designed for the benefit of innovative companies. At the same time, the population is promised that the reform will not lead to a reduction in public services. The government council took particular account of those voices in the consultation that proclaimed a cantonal dividend taxation of 50%. It is now up to the Grand Council to discuss the dispatch. The first round is expected to be completed as early as June 2019. The final vote will then take place in September 2019.
19.10.2018
The consultation on the implementation of Tax Bill 17 / TRAF, initiated by the Government Council on October 19, 2018, will last until December 24, 2018. This is intended to ensure the timely preparation of the partial revision of the Tax Act and to restore legal certainty for companies, especially since the implementation of Tax Bill 17 / TRAF is expected to come into force in the cantons on January 1, 2020. The aim of the revision is to establish the canton as an attractive location compared to other cantons and abroad. The initial results of the consultation process are not yet known.
09.03.2018
The State Council has further specified the implementation of Steuervorlage 17 in the Canton of Aargau and is now planning a reduction of the profit tax rate: The total burden through taxes for the upper tax bracket (profits over CHF 250,000) will be reduced from 18.6 to 18.2%, that for the lower bracket from 15.1% to 14.7%. In addition, the State Council proposes an increase in the privileged dividend taxation to 60% and a change in method from partial rate to full rate.
07.12.2017
For the canton of Aargau, the room for manoeuvre for profit tax reductions is rather small. On the other hand, the cantonal implementation of the Tax Bill 17 / TRAF should make full use of the room for manoeuvre in the new special regulations: A relief of 90% is to be granted for the patent box and an additional deduction of 50% for research and development.
06.10.2017
The cantonal government wants to hold talks with stakeholders before submitting its statement on the Steuervorlage 17 / TRAF to Bern.
Canton of Appenzell Ausserrhoden
04.02.2020
The referendum period has expired without a referendum being held. The amendments shall enter into force retroactively as of 1 January 2020.
Source: Official Journal No 7 of 14 February 2020 p. 175
02.12.2019
The Cantonal Council of Appenzell Ausserrhoden approved the partial revision of the tax law in the second reading. The decision of the cantonal council follows the government council and provides for a 50% relief on income from the patent box as well as the full utilisation of the 150% deduction in the area of research and development. The upper limit for dividend tax relief remains at 60%. The referendum deadline is Tuesday, 4 February 2020.
Source: Official Journal No 49 of 6 December 2019 p. 1608 ff.
29.10.2018
In October 2018, the cantonal government of Appenzell Ausserrhoden sent the partial revision of the cantonal tax law out for consultation. The ultimate goal is to be able to make the canton attractive as a business and tax location for companies on the one hand, and as a place of work and residence on the other. The government council envisages the following instruments: Tax relief on income from the patent box at 50%, deduction of 50% for research and development, and a maximum relief limit of 50%. For the people of Appenzell, the reduction of the profit tax rate is not a matter for debate. It is to remain at 6.5%. There will be no change in the level of privileged dividend taxation. It remains at 60%. Only the change of the half-rate taxation procedure to the partial taxation procedure would be changed in this point. The consultation period lasted until 21 December 2018 - to date, no results have been communicated.
Media release of the Government Council of 29 October 2018
Canton of Appenzell Innerrhoden
25.08.2020
The Landsgemeinde could not take place due to the Covid-19 situation. In its place, an extraordinary ballot was held on 23 August 2020, where, among other things, the revision of the Tax Act was voted on as an urgent matter. The revision of the cantonal tax law was accepted by the people. The cantonal law shall enter into force retroactively as of January 1 2020.
Media release on the urgency of the urgency of the urgency of the urgency of the votes
Results the ballot box vote of 23 August 2020
07.04.2020
The Landsgemeinde is expected to take place on 23 August 2020.
20.12.2019
As the new provisions in the Tax Act are not due to come into force until 1 January 2021, the Professional Ethics Committee has issued provisional provisions to avoid a gap in 2020. These are based on the draft law intended for the Landsgemeinde (Landsgemeinde resolution on the revision of the Tax Act) and will come into force on 1 January 2020.
Communications from the Professional Ethics Committee at the meeting of 3 December 2019
21.10.2019
In the Landsgemeinde resolution of 21 October 2019, the Grand Council decided on the implementation of the Steuervorlage 17 / TRAF. The Landsgemeinde resolution provides for a reduced taxation of patents and similar rights of 50%. As regards the additional deductions for research and development, the harmonisation legal framework should be fully exploited, i.e. the deductibility will be 150% in future. For dividend taxation, the partial taxation procedure with the maximum relief of 50% introduced.
Landsgemeinde resolution on the revision of the tax law (StG) 1st reading
03.05.2019
On May 3, 2019, the Cantonal Ethics Committee of Appenzell Innerrhoden provided information on the draft of the cantonal version of Tax Bill 17 / TRAF and expressed its support for the adoption of the federal revision. A few days prior to this media release, the Tax Commission then launched a consultation for the cantonal implementation of the bill. The revision is to be submitted to the Landsgemeinde for a vote only in 2020. However, the key points are mainly the following: The patent box should give a relief of 10%, a deduction for research and development expenses is not planned, the relief limit is 50%, total tax burden of 11.5 to 12.66%, deduction of child third care costs in the amount of 18%, the increase of maximum deductions for insurance premiums.
Media release of the Professional Ethics Committee of 3 May 2019
13.02.2018
The Cantonal Commission of Appenzell Innerrhoden has provisionally determined the key values of the cantonal implementation of the Tax Bill 17 / TRAF. The aim is to reduce the current profit tax rate from 8% to 6%. With regard to the taxation of dividends, the cantonal commission is sticking to the tried and tested partial rate procedure and is foregoing the partial taxation procedure provided for in Tax Bill 17 / TRAF. This demand was once again made clear to the Confederation. With regard to the other instruments, the Professional Ethics Committee would like to more or less limit itself to implementing the minimums provided for in the Tax Bill 17 / TRAF. An increased deduction for research and development expenses is to be dispensed with.
Media release of 13 February 2018
Canton of Basel-Land
11.12.2019
Shortly after the successful outcome of the referendum campaign by the cantonal electorate at the end of November 2019, the authorities of the Canton of Basel-Land declared the entry into force of the cantonal implementation of Tax Bill 17 (TRAF) on 1 January 2020. With a total of 63.2%, the revision of the cantonal tax law was approved by the electorate on 24 November 2019. The implementation parameters have not changed and can still be found in the communication of 15 April 2019.
Media release of 11 December 2019
15.04.2019
Not long before the federal referendum vote on Tax Bill 17 / TRAF , the Finance Commission of the Canton of Basel-Land passed the motion on Tax Bill 17 / TRAF for the attention of the Land Council. In it, it agrees with the cantonal government council that corporate taxes should be revised according to its elaborated model. However, the Finance Commission does not follow the government council on the issue of social compensation: instead of increasing family allowances, it would be better to increase premium reductions and deductions for childcare costs. For corporate taxes, this means the following: The reduction of the profit tax rate from 20.7 to 13.45%, deduction for research and development in the amount of 20%, patent box with 90% relief and a maximum relief limit of 50%.
Media release of 15 April 2019
09.11.2018
In a media release, the Government Council of the Canton of Basel-Land commented on the latest decisions of the Federal Assembly on 28 September 2018. For the most part, no deviations from the presented revision of 25 April 2018 can be seen. Only the dividend taxation was set at 60% by the government council. The central concern of the cantonal authorities is primarily the preservation and promotion of the attractiveness of the canton as a business location in an intercantonal and international comparison.
Media release of the Government Council of 9 November 2018
25.04.2018
The government council of the Canton of Basel-Land submits the implementation of the Tax Bill 17 / TRAF for consultation. The central element here is the staggered reduction of the profit tax rate over five years to 13.45% (year 2025). In addition, capital tax is to be reduced from a maximum of 3.8‰ today to 1.6‰. With regard to the patent box, income from patents and comparable rights is to be relieved at 90%; an additional deduction of 20% is planned for research and development. The relief cap is to be 50%. The increase in monthly child and education allowances envisaged by the Federal Council is also included in the Government Council's bill. To date, the Government Council has not yet commented on the results of the consultation process - but on the vote of the Federal Assembly on September 28, 2018 (see press release of November 9, 2018).
Media release, law and presentation of 25 April 2018
07.02.2018
The cantonal councils of Basel-Landschaft and Basel-Stadt welcome the swift action of the Federal Council and the key figures for Tax Bill 17 / TRAF communicated on January 31, 2018. The mandatory patent box and the voluntary deductions for research and development expenses are important new instruments for the region. In addition, they welcome the fact that the cantonal share of direct federal tax is now to be increased to 21.2% instead of 20.5%. For the cantonal governments of Basel-Land and Basel-Stadt, it is clear that they want to lower the ordinary profit tax rates.
Media release of 7 February 2018
05.12.2017
The government council of the canton of Basel-Land has adopted its statement on Tax Bill 17 / TRAF . It largely supports the bill, but demands an increase in the cantonal share of direct federal tax to 21.2% instead of just 20.5%. In addition, the government council demands to set the lower limit of the dividend taxation at 60% and criticizes the linkage of the SV17 with the increase of the minimum requirements for family allowances.
Media release of 5 December 2017
12.09.2017
The government of the Canton of Basel-Landschaft wants to introduce the patent box and an additional deduction for research and development expenses (input promotion) as compensation measures. The relief limit is to be around 50%. As a central point of the cantonal reform, the effective profit tax rate is to be lowered to below 14%. In addition, the government council plans to lower the capital tax rate.
Media release of 12 September 2017
Information for communities and churches on the Steuervorlage 17
20.06.2017
The government of the Canton of Basel Land demands the swift relaunch of a corporate tax reform, as legal and planning security is eminent for companies. Furthermore, the government wants to preserve Basel-Land as an attractive business location and remains in close contact with the economy of Basel-Land. Status companies (holding companies, mixed companies and principal companies) are of particular economic importance for the Canton of Basel-Land.
Presentation at the Steuervorlage 17 of 20 June 2017
Canton of Basel-Stadt
19.05.2019
At the same time as the federal vote on the acceptance of the Federal Act of Tax Reform and AHV Financing, the voters of the Canton of Basel-Stadt were confronted with the decision of the Grand Council regarding the partial revision of the cantonal tax law. Both proposals were accepted within the canton.
26.02.2019
Due to the cantonal referendum on the revision of the tax law and the resulting "yes" vote by the electorate, the cantonal government immediately put individual elements into effect. Other points are on hold until the result of the federal referendum on 19 May 2019. The following measures were put into effect:
- Retroactive implementation of the income tax rate reduction and the increase of the deduction for health insurance premiums and, for legal entities, the reduction of the profit tax rate; and capital tax rate on 1 January 2019.
- Increase in premium reductions as from 1 July 2019.
- Increase in partial taxation for dividends due to the pending referendum on 19 May 2019, with effect from 1 January 2020.
- Entry into force of the patent box due to the referendum, also on 1 January 2020.
Media release of the Government Council of 26 February 2019
10.02.2019
Together with the federal vote on urban sprawl on 10 February 2019, the Basel city electorate voted on the revision of the tax law and the referendum against it. The referendum committee was not successful. On the one hand, the proposal of SP Finance Director Eva Herzog was well received at all party levels, but also by the general population. The revision of the tax law was approved by a proud 78.78%. The successful vote was probably triggered by the linking of corporate taxation with tax relief in favour of natural persons.
Media release of 10 February 2019
Article in the Basler Zeitung from 11 February 2019
02.11.2018
A referendum was held against the vote on 19 September 2018 on the implementation of the tax bill by revising the tax law. Around 3,300 signatures instead of the required 2,000 signatures were collected by party representatives of various left-wing groups. The referendum committee is particularly concerned about the reduction of the profit tax rate to 13%. They fear considerable tax losses of about CHF 130 million. The people will vote on the referendum on 10 February 2019.
Article of the day week of 2 November 2018
NZZ article of 5 February 2019
19.09.2018
The Grand Council of the Canton of Basel-Stadt was able to reach a compromise on the implementation of Tax Bill 17 / TRAF in a vote held on this day. Three goals were achieved: Firstly, the canton remains fiscally attractive as a location for companies and workplaces - even if the tax burden increases for holding structures. Secondly, the Individual Income Tax of natural persons will decrease by around 100 million francs per year. Thirdly, the canton is making progress in terms of social policy, which should lead to further relief for the population. Overall, a reduction of 150 million francs per year is being talked about. Finally, there is a positive response from the canton of Basel-Stadt regarding the coupling of tax reform and AHV financing.
Media release of the Government Council of 19 September 2018
08.05.2018
The status companies are very important for the canton of Basel-Stadt: they contribute 60% of the canton's income from profit and capital tax and provide 32,000 full-time jobs in the canton. Therefore, the government council sought talks with the parties represented in the Grand Council and was able to negotiate the following "Basel compromise": Firstly, the patent box is to be introduced. Secondly, the ordinary profit tax burden will be reduced to 13%. Thirdly, the ordinary capital tax rate is to be reduced to 1‰. Fourthly, the partial taxation of dividends will be increased from 50% today to 80%. Fifthly, the lower income tax rate is to be reduced from 22.25% to 21.50% as social compensation and the insurance deduction for self-paid premiums for compulsory health insurance is to be increased to CHF 3,200. In addition, child and education allowances are also to be increased, a burden equalisation among the family equalisation funds is to be introduced and the cantonal contributions to the premium reductions for health insurance are to be increased by CHF 10 million. With this compromise, the Grand Council can start deliberating the SV17.
Media release and presentation of 8 May 2018
07.02.2018
The cantonal councils of Basel-Landschaft and Basel-Stadt welcome the Federal Council's swift action and the key figures for Tax Bill 17 announced on 31 January 2018. The mandatory patent box and the voluntary deductions for research and development expenditure are important new instruments for the region. They also welcome the fact that the cantonal share of direct federal tax is now to be increased to 21.2% instead of 20.5%. For the cantonal councillors of Basel-Landschaft and Basel-Stadt, it is clear that they want to lower the ordinary profit tax rates.
Media release of 7 February 2018
07.12.2017
The government council of the Canton of Basel-Stadt envisages the introduction of a patent box, but foregoes the input subsidy proposed by the Federal Council. Secondly, the ordinary profit tax rate is to be set at 13% and the capital tax rate at 1‰. However, not only taxes for companies are to be reduced, but also income tax for the population. Another important aspect for the government council is social equalisation: it wants to increase family allowances by 75 Fr. per month and child. Because this increase in family allowances led to criticism from the business community in the consultation process, a risk equalisation among the family equalisation funds is also to be introduced. Finally, the government council also wants to increase the premium reduction by CHF 10 million per year.
Media release of 7 December 2017
Canton of Bern
01.07.2020
The referendum period expired unused on 1 July 2020. Thus, the revision of the Tax Act 2021 in the version according to the referendum bill will enter into force retroactively on 1 January 2020.
Communication Tax Administration BE
07.04.2020
Adoption of the ordinance on the standstill of time limits for cantonal and communal referendums due to the coronavirus crisis by the Government Council on 1 April 2020. In the case of the optional referendum, the standstill of time limits only has a limited effect. The time limit is only suspended if there is an interest in suspending the time limit. To prove this interest, it is sufficient for a committee to notify the State Chancellery or the relevant municipal authority of a collection of signatures by 14 April 2020. No such notification has yet been received by the State Chancellery.
Media release of the Government Council dated 1 April 2020
Overview of transactions with referendum deadline
09.03.2020
After the tax law revision was already passed in the first reading on 2 December 2019. The Grand Council followed the joint proposals of the Government Council and the Commission in all points. Only the point of third-party childcare deductions remained controversial. In the second reading, the Grand Council followed the commission's proposal and the deductions were increased to CHF 12,000. The tax reform was passed. The referendum period for the optional referendum runs until 1 July 2020.
Parliamentary business in detail
31.10.2019
The State Council canton of Berne has approved the 2021 tax law revision proposal for the attention of the Grand Council. Two of the three amendments proposed by the Finance Commission supports the State Council. It creates a difference in the maximum deduction for third-party care costs for children.
Information State Council of 31 October 2019
Media release from 22 October 2019
29.08.2019
The consultation process has revealed a need for action with regard to moderate tax relief for both natural and legal persons. The 2021 revision of the tax law intends to make it possible to decouple the taxation of natural persons from that of legal entities, whereby the respective groups to be specifically relieved / burdened. By 2020 the deductions for research, development and patent box are to be increased. At the same time, the capital tax rate for companies will be reduced. As of 2021, the deduction for third party childcare will be increased and the cantonal tax for natural and legal persons will be reduced. As of 2022, a further reduction of the cantonal tax system for natural persons is to follow and the legislation on the taxation of road vehicles is to be revised from an environmental point of view. Once fully implemented, these changes should lead to cantonal revenue shortfalls of CHF 89 million per year. The municipalities will lose less than CHF 10 million per year.
Media release dated 29 August 2019
04.04.2019
At the beginning of April, the Berne cantonal government launched the announced consultation procedure for the cantonal tax bill revision 2021. The key points and probably in contrast to many other cantons, the Canton of Berne would like to waive a profit tax reduction for the time being. This is no coincidence. On 25 November 2018, the electorate of the Canton of Berne decided not to lower the high rate of profit tax. In the bill, however, tax compensation measures such as higher deductions for third party childcare costs and insurance deductions are to be introduced. The deduction for third party childcare costs is to be increased from CHF 8'000 to CHF 25'000, thus strengthening the character as a family canton. Together with the increase in insurance deduction costs, this is expected to reduce income by around CHF 53 million. The consultation process lasted until 21 June 2019.
25.11.2018
In the cantonal referendum on the reduction of the profit tax rate to 18.71%, the amendment was rejected with 53.6% of the vote. The profit tax rate thus remains at 21.64%.
29.10.2018
In a press release, the government council announced how Bern is to be made more attractive as a business location. Companies should be able to benefit from a gradual reduction in the profit tax burden. The reduction from 21.64% to 20.20% (2019) and further to 18.71% (2020) is not yet in the bag: On November 25, 2018, the people made the final decision by means of a referendum (see press release dated November 25, 2018). The consultation of the Government Council regarding the design of the Tax Bill 17 / TRAF in the cantonal territory will take place in spring 2019.
29.08.2018
On 16 August 2018, a referendum was submitted against the planned revision of the tax legislation as presented by the Grand Council on 28 March 2018. The referendum took place on 25 November 2018 (see Communication of 25 November 2018).
Media release dated 29 August 2018
28.03.2018
The cantonal parliament has approved the 2019 tax law revision by 92 votes to 51. It wants to reduce the profit tax burden from 21.64% today first to 20.20% in 2019 and then further to 18.71% in 2020. The government council wants to make a further reduction when the federal tax bill 17 / TRAF is under the roof. However, the SP, the Greens, the Association of Public Service Employees (VPOD), the Association of Salaried Employees Bern as well as the organization attac already announced the referendum against the tax law revision 2019.
The Bund article of 28 March 2018
01.11.2017
With a profit tax rate of 21.64%, the canton of Bern has one of the highest corporate tax rates in Switzerland. With the Tax Bill 17 / TRAF , Bern could fall even further behind. In the November 2017 session, the Grand Council will now discuss the 2019 tax law revision, which provides for a gradual reduction in the maximum profit tax burden over three years.
The Federal Government article of 1 November 2017
Media release of 15 November 2017
Media release of 30 March 2017
Canton of Fribourg
30.06.2019
Due to the referendum of 17 January 2019, a vote on the revision of the cantonal tax law concerning the reduction of the profit tax rate from 19.86% to 13.72% became necessary. Together with the extension of shop opening hours, this matter came before the electorate. With 55.8% votes in favour, the lowering of the profit tax rate was sealed. In order to prevent tax losses, the compensatory measures adopted include an increase in family allowances to CHF 240 as well as funds for supplementary family care. The other instruments for implementing Tax Bill 17 / TRAF at the cantonal level remain unchanged.
SRF contribution of 30 June 2019
28.03.2019
The referendum held on 17 January 2019 was successfully concluded with 7096 signatures and submitted to the State Chancellery on the above-mentioned date. The vote took place on 30 June 2019.
Media release the State Chancellery, dated 28 March 2019
17.01.2019
A left-wing committee has taken up the referendum against the draft law concerning the implementation of the Steuervorlage 17 / TRAF in the Canton of Fribourg, which was approved by the Grand Council on 14 December 2018. The vote is expected to take place in June 2019.
NZZ article of 5 February 2019
10.10.2018
On 10 October 2018, the State Council of the canton adopted a dispatch concerning the implementation of Tax Bill 17 / TRAF in the cantonal territory. The focus of the cantonal authority is predominantly on the following three pillars: the reduction of the profit tax rate for resident companies to 13.72%, the expansion of the accompanying social measures and the increase in dividend taxation to 70%. The diverse and large-scale expansion of social compensation is obvious: child allowances amount to 240 francs annually, investments of 5.2 million francs on the one hand in supplementary family care and labour market integration and on the other hand again 5.2 million francs in vocational training are to be targeted instruments in addition to the increase of the premium reduction budget by 5 million francs. Other measures include, in particular, the deduction of the patent box at the maximum rate of 90%. The capital tax will be reduced from 0.16% to 0.1%.
Media release of the Council of State of 10 October 2018
Canton of Geneva
19.05.2019
The Geneva electorate voted simultaneously on the federal bill TRAF and on its cantonal implementation. With 58.21%, the Genevans supported the revision of the tax law. When it comes into force on 1 January 2020, the 13.99% tax rate will apply to all legal entities.
Media release of the Council of State of 19 May 2019
Media release of the cantonal Tax Administration authorities of 7 June 2019
30.01.2019
The Grand Council adopted the Geneva Tax Reform (RFFA) on 30 January 2019 and will hold a popular vote on 19 May 2019, parallel to the vote on the Steuervorlage 17 / TRAF at federal level.
Media release of 30 January 2019
NZZ article of 5 February 2019
17.10.2018
On this date, the State Council of the Canton of Geneva announced a communication on the realization of the tax bill 17 / TRAF . The most obvious change is the definitive announcement of the profit tax rate at 13.79%. Previously, there was talk of a reduction to as low as 13.49%. In addition to the tax aspects, the State Council announced other adjustments, especially with regard to social compensation.
21.03.2018
The Canton of Geneva is of the opinion that the measures developed at cantonal level as part of the CTR III are also suitable for Tax Bill 17 / TRAF and that only minor adjustments are necessary. The Canton of Geneva welcomes the dispatch adopted by the Federal Council on March 21, 2018, in particular the increase in the cantonal share of direct federal tax to 21.2% instead of 20.5%. This decision should strengthen the consideration of the Grand Council to reduce the profit tax rate to 13.49%.
03.07.2017
The proposals of the Federal Council are compatible with the project of the Geneva Finance Commission. According to the Grand Council, it is a project that is more consensus-oriented and balanced. The only point that is objected to is the cantonal share of the federal tax. The Canton of Geneva will work with other cantons to increase the cantonal share back to 21.2%. At the cantonal level, the Cantonal Council will meet by September to develop a proposal. The Canton Council believes that the previous key points should be maintained. The new federal law on Tax Bill 17 / TRAF is expected to come into force on January 1, 2019. Accordingly, the cantons are granted a deadline of January 1, 2020 to implement the federal provisions into cantonal law.
Canton of Grisons
19.12.2019
The referendum period expired unused. The amendments will come into force on 1 January 2020.
Media release of 19 December 2019
29.08.2019
The Grand Council adopted the partial revision of the Tax Act. The upper limit for dividend tax relief is fully utilised and amounts to 50%. Also with the patent box and the deductions in the area of research and development, the harmonisation legal framework is used (90% and 150%). The profit tax rate will be reduced from 5.5% to 4.5%.
Resolution of the Grand Council on the partial revision of the Tax Act
Message on the partial revision of the tax law
13.08.2019
The Grand Council's Committee for Economic Affairs and Taxation (WAK) has discussed the government's message on the partial revision of the tax law for the Canton of Graubünden and has unanimously approved the proposal. However, opinions differed on the content. The majority of the commission requested a reduction of 90% instead of 70% for the patent box. With regard to the relief limit, a commission minority would like to increase the limit to 60% and a second minority would like to lower it to 33%, although the commission majority supports the government's proposal of 55%. The Grand Council will deal with these proposals in the August session 2019.
Media release of August 13, 2019
17.06.2019
Shortly after the vote on the federal bill, the Graubünden government adopted the message on the cantonal implementation of Tax Bill 17 / TRAF for the attention of the Grand Council. Specifically, the profit tax rate is to be reduced from 5.5% to 4%. Furthermore, the other instruments will be implemented as follows: The patent box guarantees a reduction in the amount of 70%, the deduction for research and development amounts to 50% and the relief limitation is around 55%.
As a relief measure for natural persons, an increase of the lump sum for professional expenses to CHF 3,500 is mentioned. The Grand Council is to discuss the bill in the August 2019 session. A possible referendum vote by the people is expected to take place on February 9, 2020.
Media release of the Government Council of 17 June 2019
30.08.2018
The partial revision of the cantonal tax law of the Canton of Graubünden as well as the municipal decrees provides for the following instruments of adjustment to the Tax Bill 17 / TRAF : Increase of the dividend taxation to 70%, the deductions under the patent box of 70%, no deduction for research and development and a reduction of the profit tax rate from 5.5% to 4%. Measures for the purpose of social compensation are also not envisaged. Until the end of November, the bill was in the consultation phase. Please refer to the communication dated June 17, 2019 regarding the structure of the dispatch.
Media release of 30 August 2018
Canton of Glarus
05.05.2019
At the traditional Landsgemeinde in Glarus, in addition to topics such as the ban on dancing and shop opening hours, the amendment of the cantonal tax law was also an agenda item. The fact that the revision of the tax law was debated for the longest time shows how topical the issue is. The final result was that the corporate profit tax should be reduced from 8 to 4.5%. The prerequisite is a positive outcome of the federal ballot on 19 May 2019. With regard to dividend taxation, the proposal of the government council will also be followed and around 70% of shareholdings will be subject to taxation. The increase in the health insurance premium deduction by around + 25% takes into account the cushioning of the proposal at the level of natural persons.
Resolution of the Landsgemeinde on the revision of the tax law
SRF contribution of 5 May 2019
18.12.2018
In a communication from the Government Council dated 18 December 2018, the amendment to the Cantonal Tax Act was submitted to the Land Council. A reduction in the profit tax rate is planned to compensate for the discontinuation of domiciliary companies, which are predominantly domiciled in the canton of Glarus. The reduction will be from 15.7% to 12.43%. The main concern is to maintain the attractiveness of the location in an intercantonal comparison. Regarding the accompanying measures, the patent box with a low deduction option is planned. At the same time, the increase of the participation tax to 70% will compensate for the expected resulting tax losses. In addition to these measures at the level of legal entities, natural persons will benefit in future from the increase in deductions for health insurance premiums as well as a reduction in the deductible for health care costs.
Canton of Jura
04.09.2019
The parliament of the Canton of Jura adopted the amendment of the tax legislation, based, based on the government's message of 6 February 2019, in the second reading. Profit tax is to be reduced to 15% and the patent box (90%) and the deduction for research and development (50%) are to be introduced at cantonal level. The relief limit has been set at 70%. The privileged dividend taxation has been adjusted to 70%.
19.10.2018
In mid-October, the government of the canton of Jura announced the first key points of the implementation of Tax Bill 17 / TRAF in a press release. The main concern of the authorities is to maintain the business location by reducing the profit tax burden from today's 20.5% to either 17% or even 15%. Accompanying measures such as deductions under the patent box and for research and development have been set at 90% and 50% respectively. The relief limit is a maximum of 30%. The privileged dividend taxation is only 30% (taxation of 70%). In order to promote social balance, the tax authorities would like to increase the tax deductions for childcare costs on the one hand and for health insurance premium contributions on the other. The consultation lasted from October 19, 2018 to November 30, 2018.
Canton of Lucerne
28.01.2019
On the first day of the session, the cantonal council discussed the amendment to the cantonal tax law, which will come into force in 2020. 79 votes in favor, 15 against and 16 abstentions were recorded. The conservative parties around the CVP, FDP and SVP jointly prevented the increase of the CIT and wealth taxes. The profit tax rate for corporations and cooperatives is to remain at 1.5%. The government originally sought an increase to 1.6%. The adjustment of the wealth tax to 1‰ was also unsuccessful. The parties reached an agreement on 0.875‰ with a time limit of 4 years. After the expiration of the time limit, the tariff falls back to the original 0.75‰. In total, the canton thus loses around 11.7 million francs in revenue per year.
Article in the Luzerner Zeitung from 28 January 2019
23.05.2018
On May 23, 2018, the government of the Canton of Lucerne launched the consultation regarding the revision of the tax law in response to the Tax Bill 17 / TRAF at the federal level. In doing so, the canton emphasizes that only the necessary minimum is to be implemented, the canton of Lucerne is already known as an attractive location for companies with low profit tax rates. The cantonal government has nothing new to say about the intended measures. Reference can be made to the media release of the government council dated March 22, 2018. The consultation period lasted until August 31, 2018, and no results of the consultation have been published to date. However, the bill was discussed by parliament in January 2019.
22.03.2018
According to a media release from the government council, the canton of Lucerne is well positioned for the implementation of SV17 after the tax law revisions in 2005, 2008 and 2011. At currently 12.3%, the tax burden for companies in the canton of Lucerne is at the lowest level in Switzerland. The canton of Lucerne can therefore afford to increase the profit tax rate by as much as 0.1 to 1.6%. The government council also wants to introduce the other substitute measures only very hesitantly. The consultation message envisages the following measures, among others: A maximum relief of 10% should be possible by means of a patent box. A relief limit of 70%, as well as a fixed capital tax of 0.001% for equity capital shares attributable to qualified participations, patents and group claims are to be introduced. The partial taxation rate for income from qualifying participations is to be set at 70%. The wealth tax rate per unit is to be increased from 0.75 to 1.0‰ and the exemption amounts are to be newly increased to CHF 100,000 (single persons), CHF 200,000 (married persons) and CHF 20,000. (per child) are to be increased.
Canton of Neuchâtel
23.08.2019
The Grand Council has approved the amendment to the cantonal tax law proposed by the State Council. The tax reform provides for changes for natural persons as well as for legal entities. For companies, the profit tax rate is to fall from 15.6% to 13.6%. The patent box (20%) will be introduced and the deduction for research and development will increase by 50%. Privileged dividend taxation is to rise to 70% and the relief limit has been set at 40%.
Media release of the Council of State of 23 August 2019
23.11.2018
In a press release issued by the State Council, it adhered to the report published in the summer regarding the adjustment of the cantonal legislation to the Steuervorlage 17 / TRAF. Only a few changes were made. The government is keen to ensure that the reform shall benefit all players in the Canton. Besides improving the attractiveness of the Canton, the preservation of resources and jobs is particularly important.
Media release of the Council of State from 23 November 2018
09.07.2018
In a report by the Neuchâtel State Councillor to the Grand Council, he distinguishes between two groups of cantons. On the one hand, cantons such as Zurich, which only make small cuts in profit tax rates, but rely on a generous implementation of accompanying measures such as relief for research and development. On the other hand, cantons like Geneva, which pursue the opposite strategy. Neuchâtel counts itself among the latter group. Based on this, the following goals are being pursued in implementation: Profit tax rate reduction from 15.6% to 13.4%, taxation of patent box 20% and research and development by 40%. The latter two measures are limited to a maximum reduction in taxation to 40%. Dividends are to be taxed at 70% in future.
Preliminary draft report of the Council of State to the Grand Council of 9 July 2018
Canton of Nidwalden
29.09.2020
In the referendum vote on 27 September 2020, the electorate of Nidwalden approved the cantonal profit tax rate reduction from 6% to 5.1%. The reduction in the profit tax rate shall enter into force as of January 1 2021.
23.06.2020
The new date for the cantonal referendum on the partial revision of the Tax Act has been set for 27 September 2020.
Media release State Chancellery, 23 June 2020
25.03.2020
The cantonal vote on the tax law revision is postponed due to the coronavirus pandemic. The postponement date has not yet been fixed.
01.01.2020
Due to the referendum, the cantonal tax law revision 2020 could not be implemented as early as 1 January 2020. Consequently, the Tax Harmonisation Act (StHG) is directly applicable since 1 January 2020. The State Council has adopted the necessary and mandatory provisional regulations and the measures provided for in the Tax Harmonisation Act in the cantonal tax law as well as in the cantonal tax ordinance. The measures include in particular the abolition of the tax status as holding or management company with transitional arrangements.
Media release the State Chancellery, dated 31 October 2019
Article 280a Tax Act and Article 93b Tax Ordinance
04.11.2019
The constructive referendum was taken and submitted on 4 November 2019 with 406 certified signatures. The vote on the bill is scheduled for 17 May 2020 is provided for. The latter State Council will then determine when the amendment to the law comes into force.
28.03.2019
In a media release of the State Chancellery, the State Council of the Canton of Nidwalden provides information on the revision of the cantonal tax legislation as of 2020. From the consultation process, the cantonal executive concluded that the basic support of the parties, institutions and organisations consulted was provided. Finally, the Cantonal Government adhered to the already stated cornerstones of cantonal implementation of the bill. As a result, the cantonal parliament - as the competent legislative body - adopted the revision of the cantonal tax legislation in two readings at the end of May and the end of June.
Media release the State Chancellery, dated 28 March 2019
Business of the District Administrator
14.11.2018
Strengthening competitiveness. This was the motto of the Government Council of the Canton of Nidwalden on 14 November 2018 when it launched the consultation process for the revision of the Tax Act. In its communication, it also specified the parameters of the implementation. In addition to the profit tax reduction to 11.97%, a maximum relief in the taxation of the patent box is to result. Meanwhile, dividend taxation will remain at the current level of 50%. A statement by the government council regarding the consultation is still pending.
01.11.2018
The government of Nidwalden has set the parameters for the changes in the tax law. It wants to remain fiscally attractive and be ready when the national tax bill comes into force in 2020. The profit tax burden is to be reduced from 12.66% to 11.97%. This is mainly possible thanks to the planned increase in the canton's share of the federal tax from 17% to 21%. The national churches are to receive only 7% of the tax revenue instead of 9, and the difference is to go to the municipalities. The canton of Nidwalden also wants to tax capital benefits from occupational pension plans (3rd pillar and pension fund) less heavily. Furthermore, there are plans to increase the education allowance by 20 to 290 francs per month. With all these measures, taxes can be reduced appropriately without risking a tax increase. The cantonal tax bill will now go into consultation until February 2019 and in May/June next year, the Landrat should deal with the package, if the Swiss people have previously said yes to the SV17 / TRAF. In the event of a "No" vote, it would be necessary to go back over the books because the federal counter-financing measures would then not take effect.
NLZ article of 1 November 2018
Canton of Obwalden
21.08.2019
The amendment to the cantonal tax legislation includes not only the implementation of the TRAF proposal, but also a partially limited increase in the cantonal tax rate by 0.3 units, of which 0.1 units of which are temporary until 2024. The amendment to the tax legislation promotes the implementation of the federal Tax Reform and AHV Financing (TRAF) on the one hand and on the other hand provides a balance of the cantonal finances. The amendment was adopted by the cantonal parliament on 28 June 2019 with 47 votes in favour.
17.04.2019
In mid-April, the government council passed an amendment to the revision of the cantonal tax law. From the consultation process, the government council drew the conclusion to leave the majority of the cantonal implementation of the bill as proposed. It is now proposed to allow a 50% deduction for research and development expenses. The Cantonal Council now discussed the bill on 23 and 24 May 2019. The cantonal electorate will also vote on the bill on 22 September 2019.
Media release of the Government Council of 17 April 2019
16.01.2019
The Government Council of the Canton of Obwalden started the new year with the beginning of the consultation on the cantonal implementation of the Tax Bill 17 / TRAF. Compared to the media release of March 22, 2018, the patent box is to be taxed privileged with 90% reduction. The relief limit is now 70% and the deduction for research and development is 150% of the maximum expenditure. The lowest limit for the reduction of the capital tax is expected to be 0.001%. No change is planned for the already low profit tax rate. With regard to natural persons, the government council would also like to increase the cantonal tax rate by 0.3 units to a total of 3.25 units, limit the travel expenses deduction to 10,000 francs and increase the real estate gains tax from 1.8 to 2%. This is expected to result in additional revenues of 11.1 million francs. According to the authorities, this is necessary to compensate for the deficit resulting from the Tax Bill 17 / TRAF . The initiated consultation period lasted until March 15, 2019. As of September 2019, the bill is to be submitted to a referendum in the canton.
Media release of Government Council of 16 January 2019
22.03.2018
The Obwalden government council announced in a media release the first key figures for the planned implementation of the tax bill 17 / TRAF . The bill passed by the Federal Council is also important for the canton of Obwalden, emphasizes the government council. The instruments and measures contained therein serve to remain an attractive location for companies. The profit tax burden is not to be changed within the framework of the SV17. However, the patent box with a reduction of 80% and an additional research and development deduction of 50% are to be introduced. In addition, the capital tax is to be reduced and the possibility of a tax-free disclosure of hidden reserves (step-up) when leaving the cantonal tax status is to be granted.
Media release of 22 March 2018
Canton of Schaffhausen
04.10.2019
The referendum period has expired without a referendum being held. The change shall enter into force on 1 January 2020.
Media release State Chancellery
Detailed information on the topic page (incl. Power Point of the media conference on 16.10.2019)
01.07.2019
The Cantonal Council clearly agrees with the implementation bill. The referendum period runs until 3 October 2019.
Source: Official Journal for Canton of Schaffhausen No. 27 / 5 July 2019.
15.03.2019
The canton of Schaffhausen, with a significantly higher proportion of status companies than other cantons, is focusing on an economy- and family-friendly implementation of Tax Bill 17 by adapting the cantonal tax laws. This is confirmed by the authorities in a media release from the State Chancellery. The reduction of the profit tax rate to 3.95% for the time being and later to 2.7% remains unchanged. Overall, this means a tax burden of 12.35%. In future, the patent box will allow a maximum tax relief of 90%, while the capital tax rate will also be adjusted and a deduction for research and development will be possible from the sixth year after the cantonal regulation comes into force. Measures for private individuals, especially for families, will also be included: The insurance deduction will increase by 200 to 1,250 Swiss francs, depending on family circumstances. Families will also benefit from a tax credit of 320 Swiss francs per child and per year. In order to promote demographic development, family and education allowances are to be increased by around 30 and 40 Swiss francs respectively as an accompanying measure.
Media release of the Government Council of 15 March 2019
08.08.2018
In August 2018, the canton of Schaffhausen published its implementation strategy for the Tax Bill 17 / TRAF in the canton. Once again, the already known points, which were announced on the occasion of the media release of January 23, 2018, were reiterated. New, however, is for example the reduction of the profit tax rate gradually to 3.75% and 2.5%. Furthermore, the planned dividend tax rate of 70% has been changed. The reason for this is a possible location disadvantage. To counteract this, the minimum tax on non-business real estate owned by legal entities is to be increased. Furthermore, the canton is forgoing higher deductions for research and development for the time being, but would like to reduce the tax burden for natural persons by increasing the deduction for compulsory health insurance premiums.
Communication of 8 August 2018
23.01.2018
The proportion of status companies is significantly higher in the canton of Schaffhausen than in most other cantons, which is why particularly large amounts of direct federal tax revenue, as well as cantonal and municipal taxes, are at stake in the course of Tax Bill 17 / TRAF . The government council envisages a future total tax burden of 12 to 12.5% for all companies as a core element of the cantonal implementation of SV17. But there will also be relief for individuals: the government council intends - in addition to the increase in child allowances proposed by the federal government - to increase the insurance deduction for self-financed premiums. Further measures of the cantonal corporate tax reform are the introduction of a patent box and a dividend taxation of 70%. A relief cap of initially 60% is intended to limit the relief moderately.
Media release of 23 January 2018
Consultation of the Canton of Schaffhausen 28 November 2017
Canton of Schwyz
22.05.2019
The Cantonal Council has accepted the Government Council's proposal without amendment. The tax reform comes into force on 1 January 2020.
26.03.2019
After the consultation process in mid-2018, the State Council adopted the report on the cantonal design of the Steuervorlage 17 / TRAF for the attention of the cantonal parliament on 28 November 2018. As the preparatory commission, the State Economic Commission discussed the bill on 25 January 2019. In a media release of 26 March 2019, the State Council commented on the Commission's deliberations: the profit tax rate is to be reduced to 1.95% and the costs for research and development may be offset against the patent box revenues for a maximum of 5 years. Otherwise, the Commission has not dealt more explicitly with the proposals of the State Council.
12.04.2018
The Government Council of the Canton of Schwyz is initiating the consultation process for the implementation of the SV17 and for the implementation of federal law, which is to last until 10 July 2018. In the process, it is submitting both implementation variants considered on 7 December 2017 for consultation: In the tax rate reduction variant, the tax rate for corporate profits is to be reduced to 2% and the minimum tax rate for capital tax to 0.03‰ (from 0.4‰ today). In the total tax rate variant, a tax rate applicable throughout the canton of 5.8% for profit tax and of 0.07‰ for minimum tax is to be introduced. An additional deduction of 50% is envisaged for research and development and a relief of 90% for income from patents. The government council emphasises that the cantonal implementation of the SV17 can be financed without a general increase in the tax burden on natural persons. The minimum taxation of dividends of 70% (as opposed to 50% today) prescribed by federal law will also generate additional revenue for the canton as a financing aid for the SV17. At the same time, the cantonal government is opening the consultation process for the revision of other federal tax law. This primarily affects the provisions on withholding tax, tax remission and criminal tax law, as well as the taxation of legal entities with non-material purposes. The consultation period lasted until 10 July 2018.
07.12.2017
The government council of the canton of Schwyz wants to strengthen the economic area of the canton with a mix of tariff and other measures. In this way, the best conditions can be created to keep the status companies, which have been taxed at a privileged rate up to now, in the canton and to encourage new companies to settle here. The Cantonal Council has commissioned the Finance Department to prepare a draft for the cantonal implementation of the Tax Bill 17 / TRAF . Two variants are being worked out: In one variant, the profit tax rate is to be reduced from 2.25% to 2.00%, which would reduce the effective tax burden (including direct federal taxes) for corporate profits of legal entities by 4.5% to 6% in all municipalities. In the other variant, an overall tax rate for corporate profits applicable throughout the canton is to be introduced, so that the strong taxation disparity that currently exists in the canton could be eliminated.
01.06.2017
The Department of Finance of the Canton of Schwyz supports the new benchmarks of the Steuervorlage 17 / in TRAF general. The implementation of the bill shall be used to render the canton as a whole more attractive for companies from a tax point of view, possibly by introducing a uniform profit tax rate for the entire canton.
Canton of Solothurn
11.02.2020
The electorate has clearly accepted the implementation of the tax reform and AHV financing in 2020 with 73.5%. The changes will therefore come into force retroactively as of 1 January 2020.
Result of the vote of 9 February 2020
26.11.2019
After the Cantonal Council made subsequent improvements to the revised Government Council proposal on November 14, 2019, the renewed referendum will take place on February 9, 2020. For reasons of legal certainty, if approved by the electorate, the tax cuts for corporate profits and the relief for lower and middle incomes will come into effect retroactively as of January 1, 2020. The second implementation bill for TRAF provides for a reduction in the profit tax rate in three stages, ultimately to 15.38%. No changes were made to the full granting of the deduction for the patent box and for research and development. The partial taxation of dividends will be increased to 70% as part of compensatory measures. As before, the bill contains relief for medium and low incomes.
Media release State Chancellery, 26 November 2019
Article in the Solothurn newspaper of 14 November 2019
27.08.2019
Due to delays in the Cantonal Council, no extraordinary vote can be held on 15 December 2019. The referendum on the implementation of the Steuervorlage 17 / TRAF is to be held on 9 February 2020.
Communication State Chancellery, 27. August 2019
09.07.2019
After the unfortunate initial situation shortly after the rejection of the revision of the cantonal tax law by the Solothurn electorate, the government council adopted a new proposal with the message to the cantonal council at the beginning of July 2019. Contrary to the original proposal, the profit tax rate is only to be reduced to 16% instead of 13%. The capital tax rate, however, will remain unchanged at 0.8‰. No changes were made to the full granting of the deduction for the patent box and for research and development. With regard to the measures for natural persons, nothing has changed compared to the communication on the first proposal of 4 April 2018. In order to achieve legal certainty, the proposal of the Government Council will be submitted to the Solothurn electorate for a vote on 15 December 2019. This should enable the cantonal and federal bill to enter into force simultaneously on 1 January 2020.
Media release of the Government Council of 9 July 2019
19.05.2019
In addition to the federal vote, the citizens of Solothurn were also concerned with the cantonal implementation of the same. The decision was rather close. The canton rejected the revision of the tax law by 51% to 49%. It will now be up to the cantonal government and parliament to prepare and submit the next proposals.
20.12.2018
After the consultation period had expired, the Government Council dealt with the corresponding submissions and adopted the bill for the attention of the Cantonal Council on 20 December 2018. Compared to the consultation draft, the government council does not envisage any significant changes. Only the taxation of dividends is now to be 70% instead of 75%. Furthermore, an agreement was reached with the municipalities regarding financial compensation. The tax losses of the municipalities are now to be fully compensated in the first year after entry into force.
05.06.2018
The Government Council of the Canton of Solothurn sent the bill for the implementation of the Tax Bill 17 / TRAF into consultation, which lasted until August 31, 2018 (see notice on the consultation results of December 20, 2018). In doing so, it adheres to its key points presented on April 4, 2018. However, in addition to the planned increase in the minimum rate for family allowances by CHF 30 per month under federal law or the increase in AHV contributions proposed by the Council of States, it is calling for further accompanying compensatory measures in the social and education sectors.
04.04.2018
The Government Council has set the benchmarks for the implementation of Tax Bill 17 / TRAF and has largely followed the concept agreed by the social partners and municipalities in February 2018. The profit tax rate is to fall from over 21% today to around 13%. At the same time, the capital tax is to be reduced from the current 0.8‰ to 0.1‰. The government council also wants to fully grant the patent box proposed by the federal government and the additional deduction for research and development expenses. In the area of natural persons, however, the cantonal dividend taxation is to be increased not only to 70%, but 75%. In addition, the cantonal wealth tax is to be increased from 1 to 1.4‰ from a taxable wealth of 1 million francs. Low incomes and families are to be relieved and the tax losses of the municipalities partially compensated. However, Landammann Roland Heim also confirmed that new savings measures will be needed to make the tax bill financially viable.
Article Solothurner Zeitung 4 April 2018
22.02.2018
The Federation of Trade Unions of Canton Solothurn, the Cantonal Solothurn Trade Association, the Solothurn Chamber of Commerce and the Association of Solothurn Residents' Municipalities have explored and concretised the framework communicated by the government on 2 February 2018. They have agreed on a new ordinary tax rate for legal entities of 12.9% and, in addition, the patent box proposed by the federal government and the additional deduction for research and development expenses are to be granted to companies in full. To counter-finance the tax revenue shortfall, the social partners and the municipalities agreed in the area of natural persons on an increase in cantonal dividend taxation to 70% and on an increase in cantonal wealth tax from 1.0 to 1.4‰ from taxable assets of CHF 1 million. In addition, they propose a location tax, which is levied exclusively on legal entities and, in addition to a minimum basic fee, is only payable by companies that pay tax on profits. In addition to the competitive tax strategy, they agreed on various measures to support families, for an IT education offensive and to relieve the burden on small incomes.
Media release of 22 February 2018
02.02.2018
The government council of the Canton of Solothurn wants to reduce the profit tax rate to probably between 13 and 16% in order to remain competitive. In addition, it wants to make full use of the relief possibilities of the new instruments provided by federal law (patent box and additional deduction for research and development expenses), but with a relief limit of 50%. The partial taxation of dividends from significant participations is to be raised to 70%, or to 75% if the profit tax rate is very low. As a further contribution to counter-financing, a moderate increase in wealth tax is under discussion. The loss of income for the municipalities is to be compensated with cantonal payments of between CHF 15 and 45 million, and flanking measures in the social and education sectors, such as the financing of supplementary family benefits or IT education measures, are also to provide compensation.
Canton of St. Gallen
05.06.2019
Already in the session of February 2019, the Cantonal Council adopted the cantonal bill, which will come into force in the Canton of St. Gallen on 1 January 2020 after expiry of the referendum deadline of 23 April 2019 and upon adoption of the bill at the national level. The following parameters are to be implemented in the future: A profit tax reduction to 14.5%, a deduction for research and development in the amount of 40%, and a deductibility of 50% of patent box income. In addition, the government has ordered the implementation of the supplement to the Introductory Act to the Federal Legislation on Family Allowances. This involves an increase of CHF 30 in child and education allowances. They now amount to CHF 230 for children and CHF 280 for young people in education. The canton would also like to use the additional tax revenue from the increase in education allowances to continue to promote supplementary childcare for families and schools. A bill is currently being drafted by the Department of Home Affairs in this regard. The bill will be submitted to the Cantonal Council in 2020 at the latest.
Supplement to the Tax Act of 24 April 2019 (transpositionTRAF )
09.10.2018
As part of the adoption of the budget for the attention of the Cantonal Council, the government once again explained the parameters of the implementation of Tax Bill 17 / TRAF and commented on the consultation process. Furthermore, some changes in the assessment of natural persons were addressed. In favor of natural persons, an increase of the insurance premium deduction to 950 francs per year is intended. The consequence of this increase is a total tax relief of 25 million francs per year. The increase in the premium reduction volume constitutes a second relief measure.
Media release of 9 October 2018
16.05.2018
On May 16, 2018, the Cantonal Department of Finance opened the consultation on the implementation of Tax Bill 17 / TRAF in the cantonal territory. It lasted until July 9, 2018 (see press release dated October 9, 2018). According to the government, the reduction of the profit tax rate to 15.2% (2020) and to 14.2% (2025) remains central. Other measures include a 50% deduction for research and development, a 50% patent box and a 50% relief cap. In the context of dividend taxation, the partial taxation procedure with a participation taxation of 70% is to be introduced instead of the half-rate procedure.
Media release of the Department of Finance dated 16 May 2018
21.12.2017
The St. Gallen government has announced in a media release that it intends to focus on a reduction in profit tax from 17.4% to around 15.2% and on tax incentives for innovation when implementing Tax Bill 17 / TRAF . The government calculates that the loss of revenue should not exceed CHF 100 million.
Media release of 21 December 2017
28.03.2017
Corporate tax reform - what does the Canton of St. Gallen? With a view to the coming budget planning, there is currently no reason to correct the planned values in the task and finance plan (AFP). However, the government will continue to monitor the situation and report to the Cantonal Council with the budget or the AFP 2019-2021.
Canton of Ticino
14.01.2020
In a media release by the Cantonal Department of Finance on 14 January 2020, it was announced that, due to a lack of sufficient signatures for a referendum, the cantonal measures to implement the federal law on tax reform and AHV financing have now come into force on 1 January 2020. The following implementation parameters are the content of the new tax law: the reduction of the profit tax rate from 9% to 8% as of 1 January 2020, the introduction of the patent box, a deduction for research and development expenses in the amount of 50% as well as the reduction of the profit tax rate from 8% to 5.5% as of 1 January 2025.
Media release of 14 January 2020
10.07.2019
The canton of Ticino has published a press release with an analysis of the extent to which the canton of Ticino still needs to adapt its cantonal tax law to TRAF .
29.04.2018
The electorate of the Canton of Ticino approved the cantonal tax and social security reform with a wafer-thin majority. This will disburden wealthy individuals and companies, but in return also families, starting in 2020.
06.02.2018
The Canton of Ticino will vote on the cantonal implementation of the Steuervorlage 17 / TRAF as early as 29 April 2018 because a left-wing committee consisting of the SP, the Greens, the Unia trade union, the Ticino and Moesa section of the Swiss Confederation of Trade Unions and the Young Socialists of Ticino has taken up the referendum. Following the rejection of CTR III, the cantonal government of Ticino did not want to wait for a solution at federal level and therefore examined a tax reform at cantonal level, which had been approved by the Grand Council in December 2017.
Cash article of 6 February 2018
Canton of Thurgau
11.02.2020
The electorate of the canton of Thurgau accepted the cantonal one Steuervorlagewith 62.7%. The changes will come into force retroactively as of 1 January 2020.
11.12.2019
The Council of the Canton of Thurgau has ruled on the amendment of the tax law in the context of the cantonal implementation of the Steuervorlage 17 / TRAF. Income from patents and similar intellectual property rights should be taxed at 60%, research and development expenses are taxed at 130%. The most controversial point of the reform is the reduction of the profit tax from 4% to 2.5%. The partial tax deduction for dividends remains unchanged at 40%. The Council decided that the amendment should be submitted to the people (referendum of authorities). The referendum is to be held on 9 February 2020.
21.05.2019
Following the approval of the federal bill on 19 May 2019, the Thurgau government has adopted the dispatch on the cantonal tax law revision for the attention of the Grand Council. The cantonal implementation is as follows: reduction of the profit tax rate from 4% to 2.5%, patent box with 40% relief, relief limitation of 50%, adjustment of the capital tax as well as the increase of the insurance premium deduction, the childcare costs and the education allowances as a compensatory measure for natural persons. The reduction of the partial tax deduction from 40% to 30% was dropped. On the other hand, an additional 30% deduction for research and development expenses was added. The government council drew a mixed conclusion from the consultation: there are strongly diverging views among the interest groups - homogeneity is nowhere to be found.
27.04.2018
As of 27 April 2018, the government council of the Canton of Thurgau sent a bill out for consultation. Once again, the authority invokes the central concern of the bill - the reduction of the profit tax rate from 4 to 2.5%. For legal entities, this means a total tax burden of about 13 to 15%. The background to the reduction is primarily the preservation of competitiveness. Furthermore, the taxation of participations will no longer be 60%, but 70%. The consultation lasted until mid-August 2018.
25.01.2018
The government council of the Canton of Thurgau is aiming for an overall tax burden of around 13 to 15% to compensate for the abolition of cantonal tax privileges, which necessitates a reduction in the profit tax rate from 4 to 2.5% today. As a counter-financing measure, the reduction of the partial tax deduction from currently 40% to 30% should be mentioned. With regard to the patent box, the Government Council expects that this measure will not be widely applied due to the very costly arrangements for claiming the patent box, also on the part of companies. For financial reasons, there should be no tax incentives for research and development expenditure beyond the full deduction. With regard to capital tax, the government wants to set the tax rate at 0.15‰ of the taxable equity capital. The relief limit is to be 50%.
Canton of Uri
28.06.2019
On 28 June 2019, the District Administrator of the Canton of Uri decided to implement the Steuervorlage 17 / TRAF. The electorate of the Canton of Uri approved the amendment to the tax law on 20 October 2019.
Official Journal No 26 of 28 June 2019, p. 902 et seq.
Communication the Association of Graduate Tax Experts of Central Switzerland
29.03.2019
In its communication of 29 March 2019, the Government Council of the Canton of Uri submitted a proposal to the Land Council to amend the Cantonal Tax Act. Primarily, the canton is relying on a reduction of the profit tax rate to 12.6% instead of the 12.5% proclaimed in October 2018 for reasons of location policy. Another change to the previously announced benchmarks is the taxation of dividends. It is estimated at 60%. There were no changes in the implementation of the other instruments - a research and development expense will not be introduced, and the patent box is made unattractive with 30% relief. The reason for this is that the Canton of Uri, as an NFA beneficiary, does not want to burden itself with more revenue shortfalls than necessary. All in all, the government's guide is clear: the canton of Uri should no longer be considered a tax hell.
Proposal of the Government Council to the District Administrator of 20 March 2019
31.10.2018
In March 2018, the cantonal government revealed the key values of the cantonal implementation. The central point is the reduction of the profit tax burden from 14.9% to 12.5%. For the purpose of counter-financing the tax loss due to the reduction of the profit tax burden, dividends will be taxed at a rate of 70% in the future. In future, the municipalities should be able to increase the capital tax rate from 0.01‰ to a maximum of 4.0‰ instead of only 2.4‰. With regard to the implementation of the other instruments, the canton is cautious: the mandatory patent box is to be made unattractive with a relief of only 30%, and a deduction for research and development is to be dispensed with entirely. Overall, the relief is to be limited to a level of 50%.
Canton of Vaud
02.11.2017
The canton of Vaud is no longer waiting for Tax Bill 17 / TRAF and is already implementing its own bill at the beginning of 2019. Indeed, the voters of Vaud had already approved the cantonal implementation of the CTR III on March 20, 2016 with a clear yes majority of 87.12%. Vaud will thus reduce corporate taxes from 20.95% (2018) to 13.79% (2019) without waiting for the federal compensation payments. Thus, the canton of Vaud chooses a different path than the majority of other cantons, which are waiting for the Tax Bill 17 / TRAF after the No to the CTR III at the federal level.
Canton of Valais
07.09.2020
The referendum period has expired without a referendum being held. The amendments to the cantonal tax law will come into force retroactively as of 1 January 2020.
Media release the cantonal Tax Administration government of 7 September 2020
12.03.2020
The Grand Council has approved the amendment to the Tax Act. The reduction of the profit tax rate for companies was uncontested. Profits of up to CHF 250,000 are now taxed at 11.89%. With regard to the capital tax, the graduation was newly set at 1 million. The other measures regarding TRAF were uncontroversial and follow the draft of the government council. The expected referendum period runs until June 25, 2020.
Overview of the referenda (incl. referendum bill StG) [visited on 07.04.2020]
Publication of the referendum proposal in the Official Journal of 27 March 2020 (Réf.-2020-006).
15.11.2019
The Government Council's draft was dealt with in the first reading in the Grand Council. The draft law provides for income from the patent box to be taxed at a reduction of 90%. The harmonisation law framework is also to be fully utilised for the deduction of research and development expenses and 150% is to be allowed. The tax law provides for new brackets (increase from 150,000 to 250,000) and new rates for cantonal profit tax: For the first 250'000 2.25% (previously 3%) and from 250'001 5.2% (previously 9.5%). The partial revision will be dealt with in the second reading in the Grand Council in the spring session 2020.
Editorial control - first reading Partial revision of the Tax Act
04.04.2019
The State Council announced its strategy for the cantonal implementation of TRAF. The profit tax rate is to be reduced from 12.66% to 11.89% in the first stage and from 21.56% to 16.98% in the second stage. The taxation of dividends from private shareholdings is to be maintained at 60% and research and development is to be additionally promoted.
16.03.2018
As early as March of this year, the Valais State Council reported on the cantonal implementation of the tax bill at a media conference. In principle, the canton of Valais with its few status companies is only minimally affected by the bill. Due to the large intercantonal reductions in profit tax rates, the State Council also feels compelled to make a reduction in order to maintain tax competition. This central point should therefore involve a reduction from 21.56% to 15.61%. The resulting tax losses are to be cushioned by a statutory increase in municipal tax rates from 1.25‰ to 1.7‰. Further measures include, on the one hand, a maximum deduction of 90% within the framework of the patent box and, on the other hand, deductions of 50% for research and development costs. Overall, however, only 34% is deductible. The canton meets the social compensation requirement with ideas to increase tax deductions for health insurance premiums and contributions and childcare costs.
Media conference on 16 March 2018
Canton of Zug
19.05.2019
With the outcome of the federal vote on the Steuervorlage 17 / TRAF, the State Council of the Canton of Zug also commented on the cantonal implementation of the bill. It emphasises once again how the attractive design of the bill benefits the canton from a national and international perspective. At that time, the cantonal parliament had already carried out a first reading of the message/proposal. The second took place on 27 June 2019 and resulted in 54 votes to 18 in favour of the bill.
Decision of the Cantonal Council of 27 June 2019
Media release of the Government Council of 19 May 2019
15.10.2018
The government of the Canton of Zug is submitting to the Cantonal Council a partial revision of the Zug Tax Law in line with the Federal Law on Tax Reform and AHV Financing (TRAF). This involves a revenue-neutral tax restructuring for the Canton of Zug, which is not intended to affect natural persons in the Canton. While certain changes will lead to additional revenue, other areas are expected to see a reduction in revenue, so that in their combination the additional and reduced revenue will roughly balance each other out. The future profit tax level is to be around 12% with the aim of ensuring that Canton Zug remains an attractive location for companies.
Media release of 15 October 2018
13.04.2018
The cantonal government of Zug is sending the cantonal implementation of the SV17 for consultation, which will last until 13 July 2018. At the same time, various changes in tax legislation at federal level will be incorporated into cantonal law. After the consultation, the Cantonal Council will discuss the amendments to the law by the end of June 2019. A possible referendum will take place in November 2019, so that the revised law could come into force at the beginning of 2020. A uniform profit tax rate of around 12% and targeted tax relief, namely through a patent box and promotion of research and development, will continue to keep Zug attractive for companies and private individuals alike. This is because the SV17 should be revenue-neutral in the canton of Zug and not redistribute any tax burdens from companies to the population.
Media release of 13 April 2018
22.03.2018
The Finance Directorate of the Canton of Zug welcomes the Federal Council's message on the Steuervorlage 17 / TRAF. The Canton of Zug will be able to carry out the implementation into cantonal law in the same way as it has communicated before. The increase of the minimum rate for child and education allowances to CHF 230 is not relevant for the Canton of Zug, because the minimum rate in Zug already is higher than that.
Media release of 22 March 2018
29.11.2017
The cantonal government of Zug welcomes the swift action of the Federal Council and finds that the SV17 is, on the whole, a balanced overall package. However, it requests that the cantonal share of direct federal tax be increased to 21.2% and is also in favour of allowing the cantons to introduce an optional deduction for self-financing. The implementation of the SV17 should be revenue-neutral in the canton of Zug and without shifting the tax burden from companies to private individuals. The cantonal government is expected to open the consultation on the cantonal implementation bill in April 2018 with a consultation period until the summer holidays 2018 and the Zug cantonal council will then discuss the bill in the first half of 2019 for entry into force in 2020.
Media release of 29 November 2017
01.06.2017
Finance Director Heinz Tännler supports the proposals of the federal government's steering body for Tax Bill 17 / TRAF. The canton of Zug is planning a uniform profit tax rate for all companies of around 12%. Furthermore, a patent box with a cantonal tax relief of 90% is to be introduced and research and development is to be promoted with a 150% cantonal deduction.
Canton of Zurich
01.09.2019
Tax Bill 17 / TRAF was approved on September 1, 2019 with 56% yes votes. Despite low voter turnout, the center-right parties managed to revise their tax law in such a way that as few companies as possible would consider relocating and that jobs could be lost in this way.
Amendment decision of the Cantonal Council of 1 April 2019
SRF contribution of 1 September 2019
02.08.2019
In a media conference held by the Zurich government on August 2, 2019, the cantonal implementation of Tax Bill 17 / TRAF was explained once again. This conference took place in view of the vote on September 1, 2019.
01.04.2019
No April Fool's joke was the adoption of the new Zurich tax law by the cantonal parliament. On Monday, April 1, 2019, after a heated debate, the commoners boxed the bill through under protest from left-wing and Green lobbyists. Criticism was voiced by opponents, denouncing the extensive use of all loopholes for tax cuts. The majority of the new tax law was penned by Finance Director Ernst Stocker. Central is the reduction of CIT from 8 to 7%. Deductions for self-financing, equity, research and development, and a 50% dividend tax are favorable sideshows. The mandatory referendum is expected to take place in September 2019.
Amendment decision of the Cantonal Council of 1 April 2019
Tagesanzeiger article from 1 April 2019
24.09.2018
The government council has submitted to the cantonal parliament a tailor-made cantonal implementation bill for the federal tax bill 17 / TRAF that is compatible with the cities and municipalities. In order to remain attractive for the currently specially taxed companies (holding companies, financing companies, etc.), the cantonal government plans a moderate and staged reduction of the profit tax rate from 8 to 7% (one year after SV17 comes into force) and from 7 to 6% two more years later. This would reduce the total tax burden on companies domiciled in the canton of Zurich from 21.15% today to 18.19% in the end. In addition, companies should be able to benefit from the self-financing deduction, a deduction for research and development and a patent box. To enable the municipalities to cushion the tax losses caused by the corporate tax reform, the canton is distributing almost 200 million francs to them. The aim is that the people of Zurich should not have to reckon with any tax increase. However, it is still open how the parties will position themselves on the cantonal tax reform. The discussion in the cantonal parliament is expected to take place in spring 2019.
Media release of 24 September 2018
NZZ article of 24 September 2018
28.05.2018
The tax office of the Canton of Zurich announced in a media release that they have added a note to the practice statement on the transition from taxation as a holding, domiciliary or mixed company to ordinary taxation (change of status): According to current practice, the hidden reserves disclosed on the occasion of the change of status with no effect on profit tax are subject to capital tax pursuant to Sec. 79 (1) StG. The amended practice note now states that the recognition of these reserves in taxable equity will cease with the entry into force of the Federal Law on Tax Bill 17 / TRAF and the associated repeal of Sec. 79 (1) Sentence 2 StG.
21.03.2018
Both the city and the Canton of Zurich are disappointed that the Federal Council has removed the interest-adjusted profit tax from the Steuervorlage 17 / TRAF. Although it had become likely that the interest-adjusted profit tax will no longer be included in the package, Ernst Stocker, Zurich's Financial Director, is disappointed nevertheless. A weakened Canton of Zurich has adverse effects on the whole of Switzerland when it comes to the national financial equalization. But because the interest-adjusted profit tax was one of the major "stumbling blocks" of the CTR III, the Federal Council probably didn't want to take any risks by reintegrating it into the new Steuervorlage 17 / TRAF.
27.11.2017
The Canton of Zurich and its municipalities have agreed on a joint position on the new corporate tax reform and could thus bring new momentum to the implementation of Tax Bill 17 / TRAF . The "Zurich compromise" includes the tax deduction on interest on equity demanded by the canton. In return, the canton has not only promised the municipalities additional money, but is also halving the planned reduction in the general profit tax rate for the time being.
Media release State Council of the Canton of Zurich of 27 November 2017
NZZ article of 27 November 2017
NZZ article of 29 November 2017
08.10.2017
The Canton of Zurich wants to find a common position with municipalities and economy on the Steuervorlage 17 / TRAF and has extended invitations to a round table. As the canton informs, it is not yet possible to report any results, but all those involved wanted to continue searching for a common denominator. In December, Zurich has to comment on Steuervorlage 17 in Berne and demonstrate how it is to be implemented at cantonal level.
NZZ article of 3 November 2017
29.08.2017
Even though the Federal Council has dropped the equity interest deduction from the reform package with its resolution on the key points of the Steuervorlage 17 / TRAF in June, the canton of Zurich doesn't want to abandon the fight just yet. According to a survey conducted with corporations at the behest of the Zurich Chamber of Commerce (ZHK), the equity interest deduction could get the canton substantial additional revenues on balance. Therefore, the Zurich Chamber of Commerce wants to work towards finding allies, which support the concerns of the Canton of Zurich, in other cantons and associations in the months to come.
In addition, on 28 August 2017, the Zurich Cantonal Tax Office published practice notes on the change of status of holding, domiciliary and mixed companies: practice note §§ 73 and 74 StG ZH.
