Adoption of the Geneva legislation on the TRAF
The Geneva draft bills are following the adoption in September 2018 of the Federal Act on Tax Reform and AHV Financing (TRAF). One of the key measures of the reform is the amendment of the cantonal Act on taxation of legal entities (LIPM). The latter sets, among other measures, a unique corporate income tax rate at 13.99%, instead of a current standard rate of 24.2%. Some social compensation measures were maintained to ensure a wider public acceptance of the draft bills. The Geneva population will vote on the cantonal and federal tax reform on May 19, 2019.
If the reform is approved, the new provisions will enter into force on January 1, 2020.