International tax increases, stable Switzerland: Cantons strengthen their tax attractiveness for companies
Swiss cantons have increased their tax competitiveness over the past two years. While most companies in Switzerland will see their tax burden reduced between 2023 and 2025 as a result of changes to tax law, many international locations will see companies facing higher taxes in order to meet the increased financing requirements of their governments. According to the BAK Taxation Index, the effective corporate tax burden in 2025 will average 13.4 per cent, which is 10.6 percentage points below the international average of 24.0 per cent. This will strengthen the Swiss cantons' high tax attractiveness and top positions in the ranking. The Top-up tax for large corporate groups introduced with the implementation of the OECD minimum tax in Switzerland is not taken into account here. The challenges surrounding the developments of the OECD minimum tax remain high for the cantons.