STAF - The new tax landscape in Northwestern Switzerland

The Federal Act on Tax Reform and AHV Financing (TRAF) will come into force on January 1, 2020. Many cantons have adapted their laws in a fast-track procedure in order to be ready for this date. This will help to avoid major legal uncertainties.

Northwestern Switzerland has largely done its homework: thanks to an early referendum, Basel-Stadt was able to bring the majority of its implementation bill into force on January 1, 2019. Baselland, Aargau and Jura have now definitively passed laws (although objection periods for the votes are still formally running). Only Solothurn is slightly behind schedule: following the failure of an initial bill, the cantonal government presented a new version of the tax reform in the summer. This was then significantly amended in the cantonal council. The electorate is now expected to vote on it on February 9, 2020.

We have summarized the most important measures in comparison in the separate table.

A comparison of the various parameters reveals the differences in the cantonal strategies: Basel-Stadt and Baselland provide relief for all taxable companies with generally low tax rates. Aargau and Jura fully utilize the possibilities of the relief measures, i.e. the maximum permissible total relief of 70 percent.