GENEVA: After nearly ten years of European Union opposition to preferential company tax deals, Switzerland’s government agreed in 2014 to do away with such arrangements. Under current rules Swiss cantons can offer preferential tax rates to certain companies, mostly multinationals with most of their activity abroad. In Geneva, these special rates mean certain companies pay tax at a rate of 11.7%, while all others must pay 24.2%.
The first step in the reform is for cantons to agree a new rate that must be applied to all companies. Neuchâtel was an early mover. It started reducing its company tax rate from 22.17% in 2012 and then to 15.61% in 2016. Vaud now has a plan to reduce its standard company tax rate to 13.79%.
