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In Switzerland, corporate taxes are levied at two levels: federal level and cantonal/communal level;

  • Federal tax is charged at 8.5% on profit after tax.
    • At cantonal level, profits are taxed at varying rates between 6% to 21%, depending on individual cantons;
    • Consequently, the effective corporate tax is typically between 12% to 24%;
  • Non - resident companies are subjected to corporate tax on income generated in Switzerland if 
    • i). they are partners of a business in Switzerland (Starting a business in Switzerland)
    • ii). have permanent establishments or branches in Switzerland and/or
    • iii). own local property;
  • Switzerland holding companies enjoy tax exemptions at cantonal/communal level, and pay a tax of only 7.8%.

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