Slight fall in Swiss corporate taxes
According to KPMG, corporate income tax rates in Switzerland have fallen from 14.6 to 14.4% compared to the previous year. Some cantons have increased their tax rates as part of the global minimum taxation, particularly for companies with high profits, and have initiated projects to promote the location.
The average ordinary profit tax rates for companies in Switzerland have fallen year-on-year from 14.6 to 14.4%. Some low-tax cantons have increased their taxes in line with the global minimum tax or are planning to do so. This is shown in the "Swiss Tax Report 2025" by KPMG, which compares the profit and income tax rates of over 50 countries and all 26 cantons.
Profit tax rates: Canton Zug at the top
With a tax rate of 11.85%, the canton of Zug continues to offer the most attractive profit taxes in a cantonal comparison. The cantons of Bern (20.54%) remain at the bottom of the ranking, followed by Zurich (19.61%) and Valais (17.12%). For the year 2025, the canton of Ticino recorded the largest reduction of 3.11 percentage points, while the canton of Basel-Landschaft reduced its income tax rate by 2.45 percentage points. "The tax reduction trend due to the STAF reform has thus come to an end. In future, we can expect slight increases in the tax rate as part of the global minimum taxation," says Stefan Kuhn, Head of the Tax and Legal Department at KPMG Switzerland.
Cantons increase tax rates to reduce supplementary tax
Some low-tax cantons have already adjusted their tax rates as part of the supplementary tax regime that has been introduced and brought the profit tax burden closer to the minimum tax rate of 15% in order to reduce the expected supplementary tax. "This allows the cantons to keep the revenue from this tax increase in full. In contrast, a quarter of the supplementary tax imposed by the federal government must be paid to the federal government," says Kuhn. The canton of Geneva, for example, has raised its tax rate from 14% to 14.7% and the canton of Schaffhausen has introduced a progressive rate as of 2024 (with a burden of 15% for profits of CHF 15 million or more). In the current year, the canton of Vaud followed suit with an increase in the tax rate from 14% to 14.7% for profits over CHF 10 million and, from 2026, the canton of Basel-Stadt with an increase in the tax rate from 13.04% to 14.53% for profits over CHF 50 million.
The cantons of Graubünden, Basel-Stadt, Zug and, most recently, Lucerne have already initiated or adopted specific projects to improve the attractiveness of their locations. Other cantons are currently discussing their approach, but have not yet published anything.
Implementation of the minimum tax is progressing despite disagreements
Not only Switzerland, but also many other countries have pushed ahead with the implementation of the global minimum tax of 15%. To date, the corresponding regulations have already come into force in around 50 countries. However, current developments in the US are raising new uncertainties that could affect the future direction and stability of this global tax initiative.
Although the US agreed to the global minimum tax project on October 8, 2021, it has not yet implemented the OECD minimum tax rules. On the contrary: the new US administration has explicitly spoken out against the OECD minimum tax. Kuhn currently believes that the global minimum tax is still on track due to its broad international acceptance. Nevertheless, the consequences of the measures taken or expected to be taken by the USA are hardly foreseeable: "If the minimum tax is restricted or even abolished in the longer term, some countries could repeal their corresponding regulations and focus more on tax competition again or consider reintroducing or expanding digital taxes in response," says Kuhn.
Customs discussion gives new impetus to industrial policy
The shift in the tax base to consumer markets sought by the major economies and the introduction of global minimum taxation in low-tax countries are shifting the priorities in location policy. As the minimum tax restricts the scope for profit tax rates, countries are increasingly turning to alternatives such as tax credits and subsidies. In addition, the discussion about US tariffs and bilateral trade agreements is showing a new dynamic in the area of industrial policy and reindustrialization. "US tariff policy in particular is likely to prompt many countries to take stock and introduce measures to protect their strategic industries," says Mathias Bopp, customs expert and head of indirect taxes at KPMG Switzerland.
Ireland remains the most important competitor in Europe
In an international comparison, Switzerland taxes companies at a low rate, especially the cantons of Central Switzerland. In Europe, only Guernsey (0.0%), Hungary (9.0%) and Bulgaria (10.0%) offer even lower ordinary profit tax rates. Ireland (12.5%) taxes similarly to Switzerland and thus remains the most important competitor in Europe. Outside Europe, the Bahamas (0.0%), Cayman Island (0.0%) and Bahrain (0.0%) stand out as low-tax jurisdictions. Hong Kong (16.5%) and Singapore (17.0%) also have attractive profit tax rates, which can be substantially reduced with additional incentive programs. Large economies such as the USA (27.0%, incl. state tax of 6%), China (25.0%), India (30.0%) and Brazil (34.0%) apply significantly higher tax rates than Switzerland. However, some of these countries also have programs that can lead to a lower effective tax burden.
Source: KPMG
