Attractive tax framework
Two of the most important reasons firms find the Basel Area a friendly environment are taxes and business-oriented authorities. That may seem counter-intuitive, but a comparatively low tax rate, along with the recent tax reform that reduced the corporate tax rate significantly mean businesses located here thrive.
Very competitive corporate tax rates
The Basel Area offers companies:
- Tax burden for corporate income ranging from 13%-15%, depending on the location
- Additional deductions for R&D activities are applicable, which can lead to an effective corporate income tax rate of approximately 11%
In addition, Basel Area cantons can offer tax relief for up to 10 years to businesses that meet certain conditions.
Other financial incentives
Businesses moving to the Basel Area can also benefit from incentives depending on where they choose to locate. If you collaborate with a university on an R&D project, you can apply for special funding. Additional incentives are offered on a regional basis. In Jura, businesses will find a number of attractive financial incentives for example, and in Basel-Stadt, rental relief is available to certain new companies.
Basel Area provides attractive tax rates that help businesses here succeed.
Tax and financial incentives
Switzerland’s federal system means the Basel Area cantons are able to set tax rates that are favorable for business. The beneficiaries in the Basel Area are companies active in innovative industries, as well as companies investing substantially in research, development and production. Incentives include:
- The canton of Basel-Stadt offers a rental expense relief program for newly established companies
- The canton of Basel-Landschaft allows provisions for scientific or technical research and development in an amount of up to 20% of the taxable profit per year.
- The canton of Jura offers a special status for New Innovative Companies (NEI) who granted a tax exemption at the cantonal level and a tax privilege for investors established in the canton of Jura. Canton Jura offers also the possibility of a tax exemption at the federal level.
Tax holiday
The Basel Area cantons can offer companies tax relief for up to ten years provided the following conditions are met:
- Establishment of a new company or a fundamental change in the business activity
- Legal entity
- Business activities serve the economic interests of the canton
- Substantial job creation
- Substantial investments
- Innovative business activities
