News Taxes

Canton of Zug: Reduction of taxable equity below the paid-in share capital possible from 2025 onwards

The canton of Zug states in its tax book that from the 2025 tax year, it will be possible to reduce taxable equity below the paid-in share capital (including paid-in participation capital).

Up to and including tax year 2024, the minimum capital was deemed to be the paid-in share capital (including paid-in participation capital), on which at least the capital tax was owed. Only in exceptional cases was it possible for companies that were previously (up to and including 2019) subject to privileged taxation (holding, domicile and mixed companies) to deviate downwards from this minimum capital during the STAF (latest corporate tax reform) transition phase (tax years 2020 to 2024).

The regulation will now be open to all companies. This means that companies with a high share capital that were previously subject to privileged taxation will not face a fiscal shock and can refrain from repaying/converting nominal capital.

Irrespective of the purpose of your company, check whether you can benefit from a reduction in capital tax and possibly even get below the paid-in share capital.

For individual advice or further information, please contact Remo Merz, certified tax expert, at merz@fineac.ch.

WHAT we do is not unique, but HOW we do it!

Remo Merz, February 2025