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Canton of Basel-Landschaft cuts corporate tax rates

25 November 2019

Corporate tax rates in the canton of Basel-Landschaft will be cut from a maximum of 20.7 percent today to 13.45 percent in 2025. This has been stipulated by the proposed Tax Regulation 17, which was approved on Sunday.

Business location Baselland (img: Schärli Hölstein)

Corporate tax rates in the canton of Basel-Landschaft will be cut markedly. The proposed Tax Regulation 17 stipulates that tax on earnings is to be reduced in five steps from the maximum level of 20.7 percent today to 13.45 percent by 2025. Tax on capital will be halved for all companies from the current level of 3.8 per thousand to 1.6 per thousand. In addition, the canton is to introduce a patent box for earnings generated by patents and similar rights; this will offer relief of up to 90 percent. Moreover, an additional discount of 20 percent is offered to research and development activities. At the same time, the tax cut for childcare offered by third parties has been increased to 10,000 Swiss francs and cantonal funding for premiums with individual reductions has been raised by 17.4 million francs.

On Sunday, a clear majority of 63.2 percent of voters approved the proposed tax regulation. In the district of Arlesheim (a suburb of Basel), the majority even hit 66.3 percent. The new cantonal tax regulation implements the Federal Act on Tax Reform and OASI Funding approved by the Swiss people back in May. This will eliminate the previous tax benefits for holding companies. Before, companies benefitting from this fiscal circumstance had been paying 10-11 percent in tax on earnings.

The Basel Chamber of Commerce (HKBB) welcomed the results of voting. “Voters in the Basel-Landschaft area have recognized that the taxation proposal strengthens the region”, HKBB Director Martin Dätwyler commented in a press release. The broad level of support from parties and associations all the way down to individual municipalities shows that a proposal had been negotiated that would command a majority.

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