Swiss Finance Minister Ueli Maurer has hinted that some Swiss cantons may choose to modify their tax systems to cater to rich individuals. As the threat of a global corporate tax rate draws near, Maurer said many cantons may make their tax code less progressive to compensate high-income residents.

Swiss cantons consider tax cuts for the rich

The Federal Councillor made the comments in an interview with NZZ am Sonntag, noting that he “could well imagine that some cantons will flatten out tax progression a bit to become more attractive for high-income employees.” However, he said the decision was ultimately up to each canton and not the government.

Head of Finance for Canton Zug, Heinz Tännler, said that the idea would be “a good way to keep the city of Zug an attractive [business] location.” Canton Vaud has also stated that it was considering tax breaks for international companies and foreign executives, if said executives want to send their children to a private or international school.

New minimum corporate tax rate to affect Swiss business

Switzerland, along with many other nations around the world, has agreed to join the OECD policy of a “minimum corporate tax rate” of 15 percent. This increase in business taxes is designed to stop so-called tax havens from emerging. According to NZZ am Sonntag, the increased rate will impact 2.000 Swiss subsidiaries of foreign firms and around 200 Swiss companies.

Maurer confirmed that Switzerland will be introducing the minimum tax rate from 2024. Swissinfo noted that other measures may be implemented to reduce the cost for businesses, such as lowering cash contributions to social security or providing more financial incentives.