Today, the cantonal parliament resolved to lower the corporate income tax rate from 7% to 6%. This results in an effective income tax rate of 18.11% instead of 19.61% in the city of Zurich. With that measure, the canton of Zurich follows through with the announcement made at the time of the corporate tax reform III. Although the canton of Zurich will become slightly more attractive for corporate taxpayers, it will still be second to last before the canton of Bern, in the cantonal ranking. It is intended to apply the new tax rate, starting 1 January 2025.
At the same time, the cantonal parliament rejected the proposal by the state council to increase taxation for qualifying dividends, in order to compensate the lower corporate tax revenues.
The Left has already announced to call for a referendum on this change of the cantonal tax act.