Following other cantons (see also our previous tax update of 20 March 2020 on tax relief measures in the canton of Zurich and on federal level), the canton of Zug on 24 March 2020 has also announced certain tax measures to help absorb some of the economic hardship that the crisis imposes on individuals and businesses.
In the following, we summarize these announced measures.
Zug cantonal taxes
- Filing deadline for tax returns extended
The deadline for filing the 2019 tax return has been extended to June 30, 2020 for all individual taxpayers. Likewise, the deadline for individuals subject to source withholding tax to submit a request for tariff adjustment for 2019 has been prolonged to June 30, 2020.
- Reduction cantonal multiplier
The canton of Zug is planning to reduce the cantonal multiplier for a period of 3 years (2021 through 2023) from currently 82% to 78%. Consequently, the tax burden for individuals and corporate taxpayers would be reduced on cantonal level as of 2021until 2023.
- Deferred payment of taxes
The payment deadline for all outstanding tax bills has been extended until 30 June 2020.
Individual and corporate taxpayers who are unable to pay their final tax bills after 30 June 2020 due to the consequences of the corona virus may have the option of deferring payment or paying in instalments. Therefore, a request must be filed with the Zug cantonal tax authorities.
- No default interest
All taxpayers will be granted a relief from default interest for the period of 1 March 2020 until 31 December 2020.
- No new tax invoices and tax assessments
The dispatch of new tax invoices and tax assessments is suspended until the end of April 2020.