🇨🇭 Tax Overview — Switzerland
Corporate tax, VAT/GST, and key tax information for businesses operating in Switzerland.
Tax Treatment by Structure
Limited Liability Company (GmbH)
Swiss corporate taxation operates at three levels: federal, cantonal, and municipal. The federal corporate income tax rate is 8.5% (effective ~7.83% after deductibility). Cantonal and municipal rates vary significantly — the combined effective rate ranges from 11.9% in Zug to 21.6% in Bern. A participation reduction (Beteiligungsabzug) reduces tax on qualifying dividend income and capital gains from substantial shareholdings (10%+ or CHF 1 million fair market value). The Swiss patent box regime (introduced under TRAF 2020) offers up to 90% reduction in cantonal tax on qualifying IP income. An additional R&D super-deduction of up to 150% of qualifying R&D expenditure is available at the cantonal level. VAT applies at 8.1% (standard rate), with reduced rates of 2.6% and 3.8% for certain goods and services.
Corporation / Public Limited Company (AG)
Taxed identically to a GmbH at all three levels (federal, cantonal, municipal). The combined effective rate depends on the canton of incorporation. The participation reduction, patent box, and R&D super-deduction all apply. AGs are commonly used as the top-level holding entity in Swiss corporate groups, with GmbH subsidiaries below. Capital tax (a tax on equity) applies in most cantons — typically 0.01–0.5% of taxable equity. The AG's ability to issue share classes makes it more flexible for complex ownership and financing structures.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.