As a result of the Old Age Insurance OASI tax reform most cantons will cut their corporate taxes in the next few years. A study is now providing concrete figures for the first time. The OASI and tax bill has been in force since the beginning of the year and the cantons have been implementing it. Because tax privileges for companies have been abolished, the cantons cut corporate taxes. The economic research institute BAK Economics has now examined the consequences of the reform. The conclusion of the study published Thursday is that Switzerland’s tax competitiveness will continue to increase internationally.
The ordinary tax burden across Switzerland will decrease from 16.8 to 13.5 percent by 2025.
Switzerland is overall advancing internationally, the tax landscape within Switzerland changes only slightly. According to BAK Economics the following motto still applies: Central Switzerland’s cantons tend to tax low, Eastern Switzerland tends to tax medium, the cantons in other large regions tend to tax high. Nidwalden remains the most tax-efficient canton.
However, there are changes at the international level. After the reform has been fully implemented, Nidwalden will replace Hong Kong, the previous leader, in first place. The cantons’ average tax burden will be lower than that of Singapore.
Official publication from BAK economic intelligence (German)
English translation
2020/07 BAK Media Release – BAK Taxation Index 2020 Update
Bloomberg article
