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• The corporate tax rates for companies in Switzerland fell from 14.6 to 14.4 percent year over year.

• Several cantons raised their tax rates in connection with the global minimum tax, particularly for large, highly profitable corporations, and initiated location promotion projects.

• Current tariff-related developments are giving industrial policy a new boost.

• Tax rates for high-income private individuals in Switzerland fell from 32.7 to 32.5 percent compared to the previous year.

• A mere 10 percent of all taxpayers pay nearly 80 percent of direct federal taxes. According to the latest federal tax statistics, roughly 40 percent of tax revenue is paid by 1 percent of the highest earners. 

The average ordinary corporate tax rates for businesses in Switzerland declined slightly year over year â€� from 14.6 percent to 14.4 percent. Some of the low-tax cantons raised their taxes in connection with the global minimum tax or are planning to do so. Those are some of the findings presented in ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø’s Swiss Tax Report 2025, which compares corporate and income tax rates from more than 50 countries and all 26 Swiss cantons.

A cantonal comparison shows that the Canton of Zug, with a tax rate of 11.85 percent, still offers the most attractive corporate tax rate. The Canton of Bern (20.54 percent) followed by the cantons of Zurich (19.61 percent) and Valais (17.12 percent) remain the lowest-ranked cantons.

For 2025, the Canton of Ticino reported the largest reduction of 3.11 percentage points, while the Canton of Basel-Landschaft reduced its corporate tax rate by 2.45 percentage points. “This marks the end of tax cuts prompted by the TRAF reform. The future is more likely to bring slight increases in tax rates in connection with the global minimum tax,â€� says Stefan Kuhn, Head of Tax and Legal at ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Switzerland.

A few low-tax cantons have already adjusted their tax rates as part of the new tax regime and brought their corporate tax rates more closely in line with the minimum tax of 15 percent in order to reduce the expected top-up tax. “This means the cantons can keep all of the revenue generated by this tax hike. By contrast, a quarter of the top-up tax enacted by the Swiss Federal Government must be paid to the Swiss Federal Government,� says Kuhn.

The Canton of Geneva, for example, raised its tax rate from 14 percent to 14.7 percent and the Canton of Schaffhausen introduced a progressive rate as of 2024 (with a 15 percent tax levied on profits in excess of CHF 15 million). This year, the Canton of Vaud followed suit with an increase from 14 percent to 14.7 percent on profits of more than CHF 10 million, and the Canton of Basel-Stadt will increase its tax rate from 13.04 percent to 14.53 percent on profits in excess of CHF 50 million from 2026 onward.

The cantons of Grisons, Basel-Stadt, Zug and � as the most recent addition to the list � Lucerne have already initiated or approved specific projects aimed at improving their attractiveness as a location. Other cantons are currently discussing their approach but have yet to publish any details.

Not just Switzerland, but many other countries have also been working to implement the global minimum tax rate of 15 percent. The corresponding rules have already entered into effect in around 50 countries to date. Recent developments in the USA, however, are triggering new uncertainties that could impact the future direction and stability of this global tax initiative.

Despite the fact that the USA agreed to the global minimum tax project on 8 October 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.

Because of its broad-based international acceptance, Kuhn currently feels that the global minimum tax is still on track. Nevertheless, the consequences of the steps taken by or expected to be taken by the USA are nearly impossible to predict: “If minimum taxation is restricted or even eliminated in the long term, some countries may consider reintroducing or expanding digital taxes in response,� says Kuhn.

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.

Mathias Bopp, tariff expert and Head of Indirect Tax at ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø Switzerland, is convinced that “US tariff policy, in particular, is likely to prompt many countries to assess the current situation and take steps to protect their strategic industries.â€�

Compared with other countries around the world, Switzerland’s taxes for companies are low � especially in the cantons of Central Switzerland. In Europe, only Guernsey (0.0 percent), Hungary (9.0 percent) and Bulgaria (10.0 percent) still offer even lower ordinary corporate tax rates. With a tax rate similar to Switzerland’s, Ireland (12.5 percent) remains the country’s most important competitor in Europe.

Outside Europe, the Bahamas (0.0 percent), the Cayman Islands (0.0 percent) and Bahrain (0.0 percent) stand out as low-tax domiciles. Hong Kong (16.5 percent) and Singapore (17.0 percent) also have attractive corporate tax rates that can be reduced substantially through additional promotional programs. Large economies like the USA (27.0%, including a state tax of 6%), China (25.0 percent), India (30.0 percent) and Brazil (34.0 percent) apply considerably higher tax rates than Switzerland. Yet some of these countries also have programs in place that ultimately result in a lower effective tax burden.

Average tax rates for top incomes in Switzerland have declined slightly year over year, from 32.73 to 32.54 percent. Nearly two-thirds of the cantons have reduced their tax rates, with the largest cuts coming from Geneva (-1.70 percentage points) and Schwyz (-0.61 percentage points).

Even despite its substantial reduction, the Canton of Geneva, which had already had the highest tax rate for top incomes in previous years, was unable to gain any ground in an intercantonal comparison: its tax rate of 41.63 percent puts it behind Vaud (41.50 percent) and Bern (40.85 percent), making it the lowest-ranked canton.

The Canton of Schwyz, which had already reported the most attractive top tax rate in the previous year, leads the ranking again this year with a tax rate of 21.98 percent � just barely ahead of the cantons of Zug (22.68 percent) and Nidwalden (24.10 percent).