Corporate taxes in Basel-Stadt reduced to 13%

The corporate tax in Basel-City is now 13%. Through patent box deductions for research and development, companies can even achieve a reduction to up to 11%. The Government Council has now made the changes effective retroactively as of January 1, 2019. With our domicile service, your company too can benefit from this low rate.

Reduction of corporate tax to up to 11%

The corporate tax burden in Basel is newly 13% (incl. federal taxes). Companies that conduct research and development can achieve a reduction down to 11% through patent box deductions. The capital tax rate is newly reduced to 1 per mille. This was made possible by 78.8% of the voters who approved the so-called Basel Compromise on corporate taxation on February 10. The Basel Government Council has set the changes to take effect retroactively as of January 1, 2019. By accepting the tax proposal, the canton expects to relieve businesses and shareholders by 100 million francs and the population by 150 million francs.

Preparation for the AHV tax proposal at the federal level

The status companies affected by the tax proposal are of very high fiscal and economic importance to Basel-City, as they contribute 496 million francs, 60% of the cantonal revenue from profit and capital tax, and employ 32,000 full-time employees. Therefore, it is not surprising that the canton has accepted the compromise with an overwhelming majority of 78.8%. The changes were made in preparation for the AHV tax proposal at the federal level, which will be brought before the voting public on May 19. This proposal aims to introduce new, internationally widespread tax measures, while giving the cantons financial leeway. As a socio-political balance, the funds for the AHV and the minimum amounts for family allowances are increased. If the AHV tax proposal is accepted, the cantons will receive additional funds from the direct federal tax from the Confederation, which were already calculated in the Basel Compromise.By our domicile service in the heart of Basel your company can also profit from the low Basel corporate tax rate and obtain a representative address in our centrally located office. It is also possible to forward incoming mail (physical or electronic).

We are also happy to offer you a management mandate. If you are interested or have further questions, you can here schedule a consultation!Findea helps you keep your taxes simple and hassle-free.