Geneva Proposes Cutting Corporate Tax Rate to Boost Appeal
- Canton plans rate of 13.49% as EU pushes to scrap tax breaks
- Reform will create 440 million-franc hole in Geneva’s finances
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Geneva proposed cutting its corporate tax rate as the Swiss canton that’s home to almost 1,000 multinationals bids to increase its allure in the face of European Union pressure to scrap preferential fiscal deals for foreign companies.
Geneva plans to reduce its standard tax rate to 13.49 percent from 24.2 percent, the cantonal government said Tuesday. While that’s above the average 11.6 percent preferential rate currently offered to many foreign firms, the new regime will improve the Swiss city’s competitive position, according to Credit Suisse Group AG.