20 December 2023

Amendment to the Tax Act of the Canton of Zug as of January 1, 2024

  • Articles
  • Tax
  • Structuring / Relocation

On November 26, 2023, the Zug electorate clearly approved the eighth partial revision of the tax law. The new tax law eases the burden on Zug's population and strengthens the canton's attractiveness. It will enter into force on January 1, 2024.

What is it about?

The new Zug tax law was approved by voters on November 26, 2023 with over 72% in favour of the changes. The tax law revision is based on the canton's good financial situation.

The new tax law eases the burden on the people of Zug and makes the canton more attractive. The changes will enter into force on January 1, 2024.

The changes in detail

  • Partial adjustment of the income tax rate

The income tax rate will be reduced selectively. This means that in future the maximum tax rate will only be reached at higher incomes than before. This will benefit people with incomes of around CHF 65,000 or more (single persons) or CHF 130,000 or more for married couples / registered partnerships.

  • Increase in deductions for childcare

The third-party care deduction will be increased from CHF 6,000 to CHF 25,000 in line with direct federal tax.

The personal care deduction will be increased from CHF 6,000 to CHF 12,000. From the age of 15, there is an additional child deduction (additional child deduction), which is also being increased to CHF 12,000.

  • Net wealth tax 

On the one hand, all wealth tax rates will be reduced by 15% on a straight-line basis. On the other hand, the existing wealth tax allowances will be doubled: for single persons from CHF 100,000 to CHF 200,000, for married couples or registered partners from CHF 200,000 to CHF 400,000 and for underage children from CHF 50,000 to CHF 100,000.

  • Indefinite retention of increased personal deductions

Personal deductions were temporarily increased for the 2021-2023 tax periods as an economic measure in connection with the COVID-19 pandemic. This increase will be maintained indefinitely due to the canton's good financial situation.

Further adjustments

  • Relieving the burden on resident municipalities by exempting them from co-financing the canton's payments to the national financial equalization scheme in future
  • Amendment of the law with regard to a provision concerning the intercantonal tax separation of legal entities that is no longer applicable
  • Addition to the administrative assistance clause in relation to social welfare authorities
  • Revision of the provisions regarding the electronic submission of tax returns
  • Adoption of various changes in accordance with the Tax Harmonization Act (StHG) into the cantonal tax law
  • Increase in the capital tax allowance for associations, foundations, corporations and comparable groups of persons and other legal entities from CHF 80,000 to CHF 200,000

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