Home Breaking tax news : taxation of swiss companies

Breaking tax news : taxation of swiss companies

Sunday, May 19, 2019 marks the introduction of the new tax system, in line with international standards, which makes it possible to develop and maintain the attractiveness of Switzerland as an economic center and which will come into effect no later than January 1, 2020. Thus, all companies in Switzerland, from small SMEs to large multinational companies will be subject to the identical tax treatment. In particular, the corporate income tax rates will be reduced in most cantons and additional measures, such as reduction of the taxation of income from patents and comparable rights (patent box) or the additional deduction for research and development expenses, cash flow deduction (notional interest deduction, NID) – may be applied, if conditions are met, in order to further reduce the maximum rates below. It will however not be possible to obtain a total tax rate lower than the minimum indicated hereafter.

In Geneva, in particular, the people have also accepted the new cantonal tax legislation, which will come into force on January 1, 2020.

The main changes are as follows:

  • Corporate tax rate of 13.99%;
  • Credit of income tax towards capital tax (tax credit) capped at CHF 8’500 during the year of entry into force of the law, full credit from the fifth year onwards;
  • Taxable part of dividends increased by 10% (70% for qualified investments held in private wealth, 60% for qualified investments held in business wealth).

Each situation must be analysed on a case by case basis, we are therefore at your disposal to provide you with the information tailored to your needs.

Effective overall corporate income tax, including federal, cantonal and communal tax  
Canton Min. Max.
Geneva 13.01% 13.99%
Aargau 11.20% 18.17%
Appenzell Rhodes-Extérieures 10.51% 13.04%
Appenzell Rhodes-Intérieures 10.31% 12.66%
Bâle-Campagne 10.99% 13.94%
Bâle-Ville 11.03% 13.04%
Berne ? ?
Fribourg 12.76% 13.72%
Glaris ? 12.43%
Grisons 9.78% 14.02%
Jura 11.02% 15.00%
Lucerne 11.46% 12.32%
Neuchâtel 11.61% 13.40%
Nidwald 9.34% 12.66%
Obwald 9.34% 12.66%
Saint-Gall 11.67% 15.20%
Schaffhouse 9.58% 12.09%
Schwytz 9.29% 12.51%
Soleure 10.56% 13.12%
Tessin 14.45% 17.01%
Thurgovie 10.70% 13.40%
Uri 10.23% 12.51%
Valais 12.99% 16.00%
Vaud ? 13.79%
Zoug 9.15% 12.09%
Zurich 11.21% 18.19%

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