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Swiss corporate tax rate still attractive but can vary by canton

Zug
The canton of Zug near Zurich offers the most favourable tax rate. Keystone / Alessandro Della Bella

Companies based in Switzerland continue to benefit from a competitive tax rate in comparison with the rest of Europe. However, regional variations remain significant.

The canton of Zug, which has a corporate tax rate of only 11.85%, offers the most attractive tax rate in the country. It is followed by cantons Nidwalden (11.97%) and Lucerne (12.2%), according to a study published on Monday by the auditing and consulting firm PwC.

At the bottom of the table are cantons Bern (21.04%), Zurich (19.65%) and Ticino (19.16%). In a European comparison, the most attractive of the Swiss cantons in terms of company taxation (Zug) ranks just behind Bulgaria (10%) and Hungary (9%). Bern is in the middle of the ranking, ahead of Denmark and Greece (both 22%) and Italy (24%). 

Last year Switzerland agreed to implement from 2024 the minimum tax rate of 15% for companies with a turnover of more than €750 million (CHF786 million).  The measure was first introduced by the Organisation for Economic Co-operation and Development (OECD) and G20 member states to pressure tax havens. 

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