Under the revised law, corporate income tax will be increased by CHF 5 million through a multi-stage rate increase, bringing highly profitable companies as close as possible to the minimum corporate tax rate of 15 percent required by the OECD. For most affected businesses, this solution is more attractive from an administrative perspective than the alternative of a supplementary tax levied by the federal government. In addition, highly significant firms with US connections do not risk being affected by double taxation. With this quick adjustment in tax policy, Schaffhausen remains an attractive and stable location for innovative and highly profitable companies. 98.5 percent of Schaffhausen businesses, especially SMEs, are not affected by this revision to the tax law and will not experience any increase in tax burden.

Additional tax revenue for strengthening Schaffhausen

The Canton and municipalities can expect an estimate increase in tax revenue of CHF 25 million in 2024 and CHF 18 million per year from 2024 onward. These additional revenues will provide the Canton with scope to fund location promotion measures to benefit companies and local residents. For individuals, the cantonal Government Council is focusing on easing the tax burden in order to encourage more people into work and help balance the demands of work and family life. For companies, non-fiscal measures are being considered to accompany the benefits of Schaffhausen’s tax environment and further improve the area’s attractiveness as a business location. The provision of infrastructure to support innovation, digital transformation, support for applied research and specific clusters of activity (such as activities that promote global sustainability goals) are expected to increase in importance. To this end, the cantonal government plans an additional tax revision in 2024, including a bill on measures to develop and promote the location of Schaffhausen.

Further information (in German)