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The city of Basel reduces corporation tax to 13%

As of recent, the corporation tax in the city of Basel is 13%. Through Patent Box deductions for research and development, companies have even achieved a reduction of up to 11%. The governing council has now allowed the changes take retroactive effect as of 1 January 2019. With the domicile service of our partner, Findea, your company can also profit from this low rate.

Lowering the corporation tax by up to 11%

As of recent, the corporation tax in the city of Basel is 13% (including federal taxes). Companies that perform research and development can achieve a reduction of up to 11% due to Patent Box deductions. The tax rate on capital recently dropped to one per thousand. This was made possible by 78.8% of voters, who voted on 10 February in favour of the so-called Basel Compromise for corporate taxation. The governing council of Basel put the changes into effect retroactively as of 1 January 2019. Due to the adoption of the tax reform, the canton is expecting relief in the hundreds of millions of francs for companies and shareholders and in the amount of 150 million francs for the general population.

Preparation for OASI (AHV) tax reform at the federal level

The status companies affected by the tax reform are of great fiscal and economic importance for the city of Basel, as they contribute 60% of cantonal revenue from corporation tax and tax on capital with 496 million francs and 32,000 full-time employees. Therefore, it is no wonder that the canton adopted the compromise with an overwhelming majority of 78.8%. The changes were made at the federal level in preparation for the AHV tax reform proposal, which will be voted on by the electorate on 19 May. The intention of this is that new, internationally prevalent taxation measures will be introduced, wherein the cantons will retain financial leeway. As socio-political compensation, the funds for the OASI and the minimum amounts for family allowances will be increased. If the OASI tax reform is adopted, the cantons will receive additional funds from the federal government derived from direct federal tax, which are included in the Basel Compromise.

If you would like your company to profit from the low corporation tax rate in Basel as well, contact our partner, Findea, who offers a domicile service in the heart of Basel.

Do you have an innovative business concept that you would like to implement? The experts at STARTUPS.CH are available for you and will accompany you towards professional independence.

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