The cantonal governments have launched official announcements and it’s anticipated that most Swiss cantons will provide attractive tax rates for all companies: 12% -14% applicable to pre-tax income (including federal income tax). Thus, Switzerland will remain a low-tax centre for big companies. With approval by the electorate, the amendment to the cantonal tax law will be effective 1 January 2020, and corporate taxation in the canton of Zurich will be adjusted as follows: The effective income tax rate at all levels (federal, cantonal and municipal) will initially decrease to 19.70% as of 1 January 2021 (capital city, previously 21.15%). Switzerland is a federal republic, officially known as the Swiss Confederation, and is divided into administrative areas known as cantons. Taxes are levied by the individual cantons as well as the government. Municipalities can also levy taxes, often referred to as a communal tax. Since the 1990 Federal Tax Harmonisation Law, cantons can set their tax rates or establish new taxes – with the exception of taxes set by the state. Tax is deducted at source – this means it is deducted by the