Patent box and moderate profit taxes make Switzerland attractive

The patent box planned as part of Switzerland’s Corporate Tax Reform III (CTR III) will reduce the tax burden on some companies considerably. In extreme cases, the Swiss patent box looks set to almost halve the effective tax burden of companies. Still, most European countries with similar patent boxes will be able to offer considerably more generous tax cuts. Nevertheless, Switzerland remains tax-attractive: its patent box, combined with moderate profit taxes, makes it a highly favourable location for broad-based companies.

Press release: BAK Taxation Index: the Swiss patent box in a European comparison

Executive Summary