Geneva’s Corporate-Tax Fight Becomes ‘Mother of All Battles’

When the European Union pressured Switzerland to scrap tax breaks for foreign companies, Geneva had most to lose. Now, the canton that’s home to almost 1,000 multinationals is set to use tax to burnish its appeal.

Geneva will on Aug. 30 propose cutting its corporate tax rate to 13.49 percent from 24.2 percent, according to three people with knowledge of the matter. For an interim period of five years, the rate will be a slightly higher 13.79 percent, said the people who asked not be named as the matter hasn’t been made public. While that’s 2.2 percentage points higher than the average preferential rate currently offered to many foreign firms, the new regime will improve the Swiss city’s competitive position, according to Credit Suisse Group AG.