Switzerland: Draft law to reduce wealth tax on shares of unlisted companies held by entrepreneurs (Geneva) - KPMG United States

A draft law would reduce wealth tax burden on shares of unlisted companies

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Article Posted date 01 March 2024

The Geneva cantonal parliament on 26 January 2024 enacted a draft law that would reduce the wealth tax burden on shares of unlisted companies held by Geneva entrepreneurs who work for their respective companies (referred to as a business asset or "outil de travail") as follows:

• 80% discount on the value tranche of the business asset between CHF 0 and CHF 10 million
• 40% discount on the value tranche of the business asset above CHF 10 million

To qualify for this reduction, entrepreneurs must meet the following cumulative conditions:

• Reside in the canton of Geneva
• Own at least 10% of the share capital (i.e., unlisted securities) of their company
• Exercise their principal gainful dependent activity within the company

This initiative brings Geneva into line with other French-speaking cantons (except Bern) that have already introduced similar benefits.

Next steps

After publication of the draft law in the official gazette of Geneva, a referendum against it was filed on 12 February 2024, with the deadline for collecting signatures of 13 March 2024.

Read a February 2024 report prepared by the KPMG member firm in Switzerland

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