The Aargau electorate approved the amendment to the Tax Act on May 15, 2022. The latter provides for a reduction for the corporate income tax rate.
Currently, the Aargau maximum corporate income tax rate is 18.6% (including federal tax). A step-by-step reduction of the tax rate will result in a maximum profit tax burden of 17.4% in 2022 and of 16.3% in 2023. As of 2024, the effective corporate income tax rate will be 15.1%.
Thus, another canton has taken an important step in the tax competition field. This puts additional pressure on high-tax cantons such as Zurich and Bern.