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Tax return in Zug

The canton of Zug is the canton with the lowest tax rate. The deadline for submitting the tax return is slightly longer in the canton of Zug than in most other cantons. At the end of July 2021, the canton had 128,590 inhabitants. It has eleven municipalities. The capital of the canton is Zug.

Tax rate in the canton of Zug

At 22.2 percent, the canton of Zug has the lowest income tax rate of all Swiss cantons.

The average for the Swiss cantons is 33.6 percent. The canton is not the only institution that collects taxes from residents. The federal and local governments also levy taxes. Taxes in the individual municipalities vary, as the municipalities themselves set their municipal tax rates and report them to the cantonal tax administration. For all those who belong to the church, church tax is also due.

In addition to income tax, residents in the Canton of Zug must pay wealth tax. All assets are taxed. However, the property tax is calculated in per thousand and not in percent. Anyone who makes an inheritance or receives a gift pays inheritance or gift tax.

Cantonal Tax Administration of the Canton of Zug

The Cantonal Tax Administration of the Canton of Zug writes to all residents who have reached the age of 18 each year and asks them to submit a tax return. The tax return can be submitted in digital form, as in all cantons. The web address of the Cantonal Tax Administration is https://www.zg.ch/behoerden/finanzdirektion/steuerverwaltung.

Postal address of the tax administration Zug

Tax Administration
Bahnhofstrasse 26
P.O. Box
6301 Zug

Contact is also possible by e-mail and telephone. E-mail address and telephone number are listed on the website of the Cantonal Tax Administration.
If you have any questions about tax returns and deadlines, residents of the Canton of Zug can also contact their local municipal office.

Tax software accepted in the canton of Zug

In the canton of Zug, the tax return can be submitted in digital form. The best way to do this is with tax software. Individual cantons accept different tax software. The eTax software is accepted in many cantons, but there are cantonal specifics. In the canton of Zug, the eTax.zug software is accepted, which is available for individuals and legal entities on the website of the cantonal tax administration.

The tax return can be submitted digitally without signature and without supporting documents in paper form. Receipts can be scanned and uploaded via a digital wizard. The tax software eTax.zug is available for download for Windows, MacOS and Linux. A helpdesk facilitates the use of the software.

A tax advisor can be used when taxpayers want to make it easier for themselves to file their tax returns. With a tax accountant, tax preparation mistakes are avoided and the tax accountant can complete the tax return for you.

Deadlines for filing the tax return

Different deadlines apply in the individual cantons for the submission of the tax return.

In the canton of Zug, the deadline for submission of April 30 is generous compared to many other cantons.

In the current year, the tax return for the previous year is always submitted. Thus, the tax return for 2022 must be filed by April 30, 2022. For those who cannot submit their tax return by April 30, an online form for extending the deadline is available on the website of the cantonal tax administration. The application must specify the PGD and the taxpayer’s date of birth. A deadline extension can be requested online until December 31. There are no costs involved.

An extension of the deadline beyond December 31 may be requested in writing by submitting a request to the cantonal tax administration. The reasons why the deadline cannot be met must be stated. A processing fee of CHF 35 will be charged for this.

Consequences of failure to comply with the deadline and failure to file the tax return

Anyone who does not submit a tax return in the canton of Zug by the deadline and does not request an extension of the deadline will receive a reminder for which a fee of CHF 20 will be charged. A new deadline is set with the reminder. If this deadline is also not met, the taxpayer will receive another reminder, which is also subject to a fee.

Failure to file a tax return will result in a fine, depending on income, of up to CHF 1,000. In serious cases, a fine of up to CHF 10,000 may be levied. Serious cases include repeated failure to file tax returns and suspected tax evasion.

Possibility of payment relief in the canton of Zug

Natural persons who are in financial difficulties may, after receiving the tax assessment notice, submit a request for deferral or payment by installments to the person whose name appears on the tax assessment notice. The request must be justified. Reasons for financial difficulties may include unemployment, illness or disability. In the event of deferment and payment by installments, interest on arrears shall be payable. Failure to comply with the agreed installment payment will trigger legal collection.

What is tax-free in the canton of Zug?

Tax exemption applies to various types of income in the canton of Zug. This concerns winnings from legally permitted cash games up to CHF 1 million per game for large games. Winnings from lotteries and games of skill for sales promotion are tax-free up to CHF 1,000 per game.
The pay of militia firefighters is tax-exempt up to CHF 8,000 per year if it was paid for the performance of the fire department’s core duties.

What is tax deductible in the canton of Zug?

Various expenses are tax deductible in the canton of Zug:

  • Expenses for Covid 19 measures for home office in the context of professional expenses.
  • Travel costs between home and place of work up to a maximum of CHF 6,000
  • Professional expenses, for example for professional tools, professional literature and professional clothing, 20 percent of net income, minimum CHF 800, maximum CHF 2,400
  • Maintenance costs for real estate held as private assets
  • Insurance premiums for health, life and accident insurance
  • Interest rates for savings accounts
  • Second-earner deduction up to CHF 4,400 per year if both spouses work and earn only a small income
  • Membership fees and contributions to political parties up to CHF 20,000 per year
  • Costs for outside care of children up to the age of 14 up to CHF 6,000 per child and year
  • Further training and retraining costs up to CHF 12,000 per year
  • Stake costs for winnings from participation in casino and major games up to CHF 5,000 per game, maximum CHF 25,000 per year
  • uncovered sickness and accident costs.