Voters in Geneva decided against an initiative and against a counterproposal concerning the “tax holidays” practice, whereby some Geneva based entities benefit from an exemption from cantonal and communal taxes on their profit and capital, for a period ranging from five years to 10 years.
The referendum concerned whether to maintain the practice of providing tax holidays. In advance of the vote, the State Council prepared a counterproposal aiming to maintain the tax holidays practice, but amending the rules. The voters, however, rejected both the initiative and the counterproposal. As a result, the tax holidays practice continues in Geneva for the time being.
Therefore, companies eligible to benefit from full cantonal and/or communal tax holidays have an effective income tax rate of 7.83% for the period of the holiday (ranging between five years to 10 years). In 2015, the Geneva State Council granted six “tax holidays” to companies located in the canton. These companies included “start-ups” as well as international groups implementing a European presence in Geneva.
Read a March 2016 blog article posted by the KPMG member firm in Switzerland: Tax holidays still granted in Geneva!
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