A governing executive body of the canton of Geneva on 31 January 2019 approved a cantonal project with respect to the Swiss federal tax reform legislation (that is referred to as the “Federal Act on Tax Reform and AHV Financing” or “TRAF”)—the project that notably includes a proposed reduction in the corporate income tax rate to 13.99%.
The final project will now be subject to a cantonal vote by the Geneva electorate on 19 May 2019. If approved, both the cantonal project and the federal project would be expected to be effective 1 January 2020.
Among the measures in the legislative project are the following items:
In its current form, the cantonal project is related to the federal project for tax reform (TRAF), but if the federal project is rejected whereas the cantonal project is approved by the voters, the cantonal measures could potentially be subject to amendment. There is no alternative project as a back-up provision if the draft cantonal law is voted down by the voters in the Geneva referendum.
Read a February 2019 report prepared by the KPMG member firm in Switzerland
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