News Taxes

Law on Regional Development: Submit Funding Applications for 2024 by May 31, 2026

Since early March 2026, funding applications based on the Act and the Implementing Ordinance on Location Development of the Canton of Zug can be filed. A significant portion of the additional revenue from the OECD minimum tax will be made available to the Zug economy to promote sustainability and innovation. For the years 2026 through 2028, the annual funding contributions are set at CHF 150 million. Starting in 2029, the amount is generally expected to amount to 50% of the annual net additional revenue from the OECD minimum tax.

The Canton of Zug considers sustainability and innovation to be worthy of support. In the area of sustainability, the initial focus for 2026 to 2028 will be on CO2 savings from purchased goods and services (Scope 3 Category 1, ISO 14064). Companies that can demonstrate they are saving 50,000 tons of CO2 emissions per year in this regard may apply for a subsidy. The already high quantitative requirements are further heightened by the need for an audit confirmation from a recognized auditing firm. As a result, the sustainability subsidy is effectively accessible only to very large companies.

In the area of innovation, the Canton of Zug supports innovative activities (basic research, applied industrial research, experimental research, and activities related to intangible assets/rights/DEMPE-functions) as well as clinical trials conducted in Switzerland. For the former, 25% of the deductible personnel expenses incurred in the Canton of Zug (including a 35% surcharge) may be applied for as a grant. For clinical studies, 25% of the applicant’s own material expenses incurred in Switzerland or of the costs for conducting a clinical study through a contracted third party in Switzerland is offered as a grant.

Grant applications for 2024 must be submitted by May 31, 2026 (in electronic form), and those for 2025 by May 31, 2027. Legal entities and individuals with a personal (registered office/place of effective management or place of residence or temporary residence) or economic (e.g., permanent establishment or place of business) connection to the Canton of Zug are eligible to apply. Companies in liquidation or those with debts to Swiss authorities are excluded. The funding grants are provided as direct payments or in the form of tax credits. The minimum grant is CHF 7,500 per company, although a maximum amount per company may be set by the Cantonal Government. The first applications for 2024 are to be assessed and confirmed by decree by the end of August 2026 at the latest. If the total amount of applications exceeds the total funding available, a proportional reduction will be applied. Therefore, the final amount will be determined at a later date and is to be paid out or credited in November only.

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

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

Remo Merz, April 9, 2026