🇨🇭 Corporate Tax in Switzerland

Headline rate: 11.9–21.6% (canton-dependent)

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.

Key Facts

Double tax treaties: 100
Memberships: EFTA, WTO, UN, OECD
Legal system: Civil law
Fiscal year: Company chooses (calendar year common)

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.