News Taxes

Canton of Zug: Vote on 30 November 2025 on amendments to the Tax Act and the Location Development Act

With the expiry of the temporary reduction in the cantonal tax multiplier in connection with COVID-19, it will rise again from 80% to 82% from the 2024 tax year onwards. Due to the canton's continuing good financial situation, the Cantonal Council is proposing a further temporary reduction in the cantonal tax rate to 78% for the years 2026 to 2029. Both natural persons and legal entities could benefit from the temporary reduction.

In addition to the temporary tax multiplier reduction, an increase in the deduction for insurance premiums and interest on savings capital from CHF 6,000 to CHF 9,200 for married couples and from CHF 3,000 to CHF 4,600 for other taxpayers is proposed. In addition, the supplement for each child (or person in need of support) is to increase the deduction by CHF 1,600 instead of CHF 1,000. As a further social policy measure, pensioners are to be given relief by granting them a deduction of CHF 6,000 per person up to a net income of CHF 120,000 for married couples and CHF 60,000 for other taxpayers. The deduction does not apply to net assets of more than CHF 400,000.

Companies affected by the OECD minimum tax cannot benefit from the reduction in the cantonal multiplier rate, as they are subject to a general minimum tax rate of 15%. The Cantonal Council has therefore drafted a law on location development. The law is intended to regulate the distribution of the additional expected annual tax revenues of around CHF 150 to 300 million, or rather the extent to which these are to be invested in location development. Between 2026 and 2028, a maximum of CHF 150 million (thereafter at least 50% of the revenue from the OECD minimum tax) will be available for subsidies to companies, i.e. not only legal entities but also self-employed persons who are personally and economically affiliated with the canton, in the form of direct payments or tax credits in the canton of Zug. The cantonal government must determine the subsidies, which are only granted upon application, taking into account current international developments and the national and international competitive situation.

If you have any questions about what this could mean for your personal situation, please contact us for individual advice or further information: Remo Merz, certified tax expert, remo.merz@fineac.ch.

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Remo Merz, September 2025