New Corporate Profit Taxes 2015

The tax rates for corporate profits will slightly increase in the Canton of Schwyz and the Canton of Appenzell Ausserrhoden, as well as in various municipalities. In the remaining cantons, the tax rates will remain at a constant level. Corporate tax for legal entities 2015

(Source: own illustration, based on http://www.nzz.ch/wirtschaft/trendknick-in-der-steuerbelastung-1.18459849)

Rising tax rates indicate a turning point

The average cantonal tax rates for corporate profits will slightly increase again in 2015 for the first time. Professor Pascal Hinny of the University of Fribourg identifies this turning point based on his statistical surveys. In the last nine years, from 2005 to 2014, the average tax burden decreased from 22% to below 18%. However, some tax increases were decided last year. The Cantons of Schwyz and Appenzell Ausserrhoden, as well as several municipalities, will increase the tax on corporate profits in 2015. This turning point reflects the difficult financial situation in some cantons, as noted by NZZ. Despite a positive economic situation, many cantons budgeted a deficit in 2015. Still, the tax burden on corporate profits in Switzerland remains very low in international comparison. The average tax rate in the EU has decreased from 24.8% in 2006 to 21.3%, which is 3.5 percentage points above the Swiss average.

The future development of Swiss tax rates closely relates to the design of Corporate Tax Reform III, which is still under consultation until 31.05.2015. In particular, the abolition of tax privileges for holding, domiciliary, and mixed companies will lead the cantons to further reduce taxes on profits to maintain the attractiveness of the location.

A slight increase is also recorded in the average income tax rates (from 39.9% to 40%).