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Schaffhausen – The Schaffhausen cantonal parliament has approved a reduction in the corporate tax rate from today’s 16% down to 12.35%. This will make Schaffhausen the canton with the third lowest tax rate in Switzerland.

The cantonal parliament approved the government’s proposal to implement the tax reform and AHV financing (TRAF) with a strong majority: 46 members of the cantonal parliament voted in favour of the partial revision of the tax reform in a second reading, with only six opposed.

The proposal calls for a gradual reduction of the corporate tax rate from today’s 16% down to 12.35%, giving Schaffhausen the third lowest corporate tax rate after the cantons of Nidwalden and Zug.  

In addition, Schaffhausen intends to allow a maximum relief of 90% in the patent box and increase deductions for research and development by 25% beginning in the sixth year after the tax reform package comes into effect. At the same time, further improvements are planned for individuals as well as families.

For the canton, the tax reform is meant to be financially neutral. Municipalities will even receive 2.4 million Swiss francs in the first five years and 4.7 million francs more from the sixth year onwards.

The economic promotion agency of the canton of Schaffhausen is pleased that the cantonal parliament approved with a “massive majority” the tax reform​​​​, which will make Schaffhausen “an attractive economic region for national and international companies in the future as well” by creating “the best conditions for the future development of Schaffhausen as a business location”.

The tax reform proposal is now subject to an optional referendum.

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