Attractive corporate tax rates, state-of-the-art business premises and housing at affordable prices and low costs of living – companies and residents in Schaffhausen profit from a range of cost benefits. Just months after the implementation of tax measures in the wake of the STAF tax reform which benefits businesses and families, the cantonal parliament decides on a significant tax reduction effective by 2022. The Canton of Schaffhausen thereby further incentives investment in Schaffhausen for both businesses and private individuals and strengthens its cost attractive location.

Reduction of the cantonal tax rate for private individuals and companies

Schaffhausen based businesses will as well benefit from a further cantonal tax reduction by four percentage points to 98 percent. For Schaffhausen residents, the cantonal tax rate will be reduced by eight percentage points to 94 percent. With this, the Canton of Schaffhausen further closes the gap to its neighbouring Cantons such as Zurich and sends another positive signal towards private individuals. These steps cement the Canton’s very attractive tax regime in comparison to other parts of Switzerland and continue to provide an attractive tax environment for both businesses and residents located in the Canton.

New variable income tax rate

Another favourable amendment to the cantonal tax law is the adoption of a variable income tax rate for Schaffhausen based companies which becomes effective by January 1, 2022. It is an immediate response to the global efforts around the introduction of a certain minimum tax rate to business groups with international operations. Hereby, the Canton of Schaffhausen has introduced the variable income tax rate for affected companies in order to remain a highly competitive business location for international business groups. The income tax rate can be increased (but not reduced) upon request, in order to reach a level accepted by other jurisdictions.