News Taxes
YES to the amendment of the Zug tax law
The people of Zug clearly said yes to the amendment of the Zug tax law to manage the financial consequences caused by the coronavirus.
The following changes will come into force retroactively as of January 1, 2021:
- Reduction of the cantonal tax multiplier (temporary): The cantonal tax multiplier will be reduced from the current 82% to 80% for the tax years 2021 to and including 2023.
- Increase in personal deductions (temporary): The personal deduction will be increased from the current CHF 7’100 (single) and CHF 14’200 (married) to CHF 11’100 and CHF 22’200, respectively, for the tax years 2021 to and including 2023.
- Expansion and simplification of the tenant deduction (unlimited): From the 2021 tax year, tenants will generally be able to deduct 30% of the residential rent up to a maximum of CHF 10’000.
The above adjustments also have an impact on the source tax rates, which must be reduced retroactively as of January 1, 2021. Thus, the assessments already made for the year 2021 must be corrected in favour of the affected employers and persons subject to source tax. Further information on this will follow.
For any further questions or advice please contact Cornelia Hager, Head of Private Tax Clients, hager@fineac.ch or Remo Merz, Head of Corporate Tax, merz@fineac.ch
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