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COVID-19: tax measures of the Canton of Zug

  • Markus Vogel, Partner |

The current situation has prompted the Cantonal Government of Zug to grant various tax reliefs for individuals and legal entities. With the below mentioned measures the Canton of Zug is making a valuable contribution to overcoming the ongoing corona crisis.

  • Companies and self-employed persons who are directly or indirectly affected by the negative consequences of the coronavirus (COVID-19) are allowed to make a provision of up to 50% of the ordinary profit or self-employment income once in the 2019 annual accounts, but not exceeding CHF 500,000. The extraordinary provision created in 2019 must be reversed in the 2020 financial statements.
  • The deadline for filing the 2019 tax return for individuals and legal entities is extended to 30 June 2020 respectively 30 September 2020. Further extends are possible and will be processed with goodwill.
  • No tax bills and tax assessments will be sent out until 30 April 2020.
  • The payment deadlines for tax bills (Cantonal and Communal Taxes as well as Federal Tax) that have already been sent out will be extended until 30 June 2020. No interest on arrears will be charged for the period from 1 March to 31 December 2020. Requests to extend the deadline beyond 30 June 2020 will be assessed individually and processed with goodwill.
  • The deadline for applications for tariff corrections for source taxes is extended to 30 June 2020.
  • A proposed reduction of the Cantonal Tax rate from currently 82% to 78% for the tax periods 2021 – 2023 is currently in the political process.
  • Deadlines for objections to tax assessments and tax invoices must be met. The legal regulations for the restoration of missed deadlines remain reserved.

The official information in German from the tax administration of the Canton of Zug is available at the following link. The tax measures adopted by the Swiss Confederation, particularly with regard to Value Added Tax (VAT), withholding tax and stamp duty, can be found on the official websites of the Federal Tax Administration and the State Secretariat for Economic Affairs SECO.

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