The Post-War Take-Off (1947–1990) — conclusion

Conclusion of Chapter II

Between 1947 and 1990, the canton of Zug built the business model that has defined it ever since. The tax law of 1947 confirmed the privileges of 1930 at the moment when international capital began to flow again. The practice on mixed companies, developed by the tax administration in the late 1950s, extended those privileges from passive holding companies to active trading and service companies. The first commodity traders arrived in 1957 and were followed by German and American groups, while the life sciences sector discovered the canton from the late 1970s. The number of companies multiplied and the multipliers of the communal taxes fell, while the canton's share of national income doubled.

The model rested on three elements: a statutory privilege for holding and domicile companies, an administrative practice for mixed companies whose legal basis was thin, and a pragmatic administration that knew how to deal with international companies and their advisers. It was supported by the voters, confirmed in every major tax vote, and defended by a political class whose members moved easily between the cantonal administration, the boards of the companies it attracted and federal politics. It was criticised throughout, from the right and from the left, at home and increasingly abroad. By 1990, it faced a new challenge: the harmonisation of cantonal tax law by the Confederation, which would codify the model, and then the international pressure that would, three decades later, bring about its abolition.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.