Geneva slashes corporate taxes to appease critics

On the same day that the European Commission demanded that Apple pays €13 billion (CHF14.2 billion) in backdated Irish taxes, the Geneva cantonal government announced plans to cut its corporate tax rate from 24% to 13.49% whilst ending special treatment for foreign firms. Geneva’s decision comes in the wake of European Union pressure to end “harmful” tax practices that effectively gave subsidies to multinational companies with offices in the canton. Such changes are being implemented across Switzerland, driven by a federal reform of corporate tax rules. In March, canton Vaud - which also plays host to many foreign multinationals – voted to reduce its corporate tax levy from 21.65% to 13.79%. In 2011 Neuchatel also reduced its tax bill from 22.18% to 15.9%. The Geneva government’s planned cut should enter into force from 2019 and be subject to a five-year transition period. The government estimates that changes to the corporate tax rate will result in an estimated ...