The People of Nidwalden voted to accept the partial revision of the cantonal tax law, giving preference to the submission of the district administrator with a yes share of 59.4 percent.
With the federal law on tax reform and AHV financing, the tax privileges for holding and management companies that have existed in Switzerland for many decades and that have come under international pressure have been abolished and new tax relief has been introduced to replace them.
The cantonal implementation of the federal tax reform is intended in particular to eliminate the different taxation of domestic and foreign corporate profits of holding and management companies in the canton and, in return, to reduce the cantonal profit tax for all companies and provide further tax relief to ensure a top position for Nidwalden in corporate taxation.
With the acceptance of the submission by the district administrator, the profit tax for all companies and cooperatives in the canton of Nidwalden will be reduced from 6.0 to 5.1 percent, as a compensation for the tax privileges for holding and management companies due to international harmonization.
Aside from changes to lump-sum benefits from provisions and an increase in the deductions on childcare, the tax relief on patent income will be increased to 90 percent (previously 80 percent), with a new limit to the maximum possible 70 percent of taxable profit.
The maximum permissible tax relief of 50 percent for dividend taxation of qualifying holdings will be retained.
