Switzerland: Citizens are asked not to pay taxes regularly

"Given that interest rates are still low and that they would have to pay negative interest, the Canton has no reason to encourage taxpayers to pay taxes immediately. It is in our interest that taxpayers pay taxes as late as possible - in order to have less costs," it is stated. in the announcement of the Canton of Cug
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Bern, Switzerland, Photo: Shutterstock
Bern, Switzerland, Photo: Shutterstock
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 13.01.2016. 15:17h

One Swiss canton sent a request to taxpayers, asking them not to pay taxes regularly.

Zug (a canton near Zurich) is facing a "problem" because its residents pay their taxes regularly, so they have asked for the payment to be postponed as late as possible.

They supported this request by canceling privileges for regular tax payment.

Interest rates are currently negative in Switzerland, so Cug does not want to accumulate cash to avoid paying interest. In this way, they will save 2,5 million Swiss francs.

"Given that interest rates are still low and that they would have to pay negative interest, the Canton has no reason to encourage taxpayers to pay taxes immediately. It is in our interest that taxpayers pay taxes as late as possible - in order to have less costs," it is stated. in the announcement of the Canton of Cug.

In 2014, the Swiss central bank introduced a negative interest rate in order to reduce the demand for its own currency, because they believe that an excessively strong exchange rate harms the economy.

The Cuga practice could soon be applied by other cantons.

Cug is a phenomenon, because it has 27.000 inhabitants and 29.000 registered companies, due to extremely low taxes.

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