As revealed in KPMG’s Swiss Tax Report 2017, no noteworthy shifts in tax rates were discernible for the past year as a whole. Following some minor cuts in 2016, indications this year are pointing to yet another unmistakable trend toward stagnating regular corporate tax rates. The circumstances regarding individual tax rates are similar.
The corporate tax reform, recommended by Federal Council, Parliament and 25 cantonal governments, did not find a majority in the Swiss public. The demand of companies for restoration of legal certainty and the pressure of the EU on the abolishment of the cantonal tax status continues.
Following the latest discussions on federal level regarding the Corporate Tax Reform III, the Zurich cantonal government decided to reduce its ordinary tax rate from the current 21.1% to 18.2% which is ultimately beneficial to all Zurich companies.