Better conditions for Zurich startups

So some startups criticized the state regulations in Zurich. Many entrepreneurs threatened to move out of the region if the tax burden for young companies increased. What was unsatisfactory from the point of view of the young entrepreneurs was that the property taxes for the shares could possibly exceed the basic income of the young entrepreneurs.

As a result, the Financial Directorate decided last March to tax young companies only at the significantly lower net asset value in the first three to five years. Only in the second phase would it be possible to assess how much investor money would have to be taxed. Now the regulations are being changed even more in favor of young entrepreneurs:

The first mentioned grace period will be extended. Young companies will now be taxed more favorably until they can show representative business results. Investor prices will only be taken into account in the share valuation after this start-up phase.

New startup definition

Until now, moreover, it was unclear which companies are considered startups at all. A definition is also lacking at the national level. The new directive describes these companies as "corporations (AG or GmbH) with an innovative, usually technology-driven business model that is in the process of being established and is scalable".

Specifically, this means: Companies that develop innovative technological products or services that have not yet established themselves on the market, but are geared toward becoming marketable. With this clarification and the change in practice, owners of startup investments in the canton of Zurich will enjoy "at least as good conditions as in other cantons," according to a recent statement by the Finance Directorate.

More details about the directive of the Financial Directorate of the Canton of Zurich can be found under this Link