Abolition of the municipal business tax (TPC)

Further to our previous article related to this subeject, the Conseil d'Etat has set January 1st, 2024 as the date on which the law of May 11th, 2023 amending the general law on public contributions and abolishing the taxe professionnelle communale (LCP) will come into force.

Indeed, the TPC will be abolished as of next year. To compensate for this abolition, a compensation fund for communes will be introduced. 

This compensation fund will be fed by the additional supplementary centimes levied in accordance with art. 302 LCP (new version). These additional centimes will be made up of the existing communal additional centimes and a complementary additional centime of 28.5 centimes per franc of cantonal profit tax collected. According to the estimates of the counter-project, the income tax rate would rise to around 14.7% (previously 14%). 

During a transitional period, the amounts will be distributed to the communes by combining the average production of the municipal business tax and the distribution provided for in art. 303, with specific rules for certain communes (Bellevue, Meyrin and Versoix; which will receive determined amounts for the first 6 years). 

This will be followed by the distribution between communes provided for in art. 303 LCP (new version); this distribution will be proportional to the number of full-time jobs in each commune, with weighting factors applied according to the different sectors of activity. 

Should you require any further information on this subject, please do not hesitate to contact us.