Corporate Taxation

Staged reduction in profit tax rate for companies in the canton of Aargau

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.