Swiss Corporate Taxation: Fiscal Variances by Canton in Switzerland (2023)
In Switzerland, businesses are subject to two distinct categories of taxes, namely, profit tax and capital tax, the latter being applied to the entity’s equity (share capital/share premium + reserves). These tax obligations are governed at the federal, cantonal, and municipal levels, with tax collection orchestrated by each canton. In the context of Swiss federalism, fiscal competition manifests itself among cantons and municipalities, resulting in significant disparities from one canton to another. Thus, Switzerland faces marked diversity in terms of tax burden.
Which locations offer particularly attractive tax advantages for businesses operating in Switzerland?
In the Central Switzerland region, the canton of Zug stands out with an exceptionally low profit tax rate, averaging 11.90%. In contrast, the canton of Bern distinguishes itself by presenting the highest corporate profit tax rate, reaching an average of approximately 21.04%. The canton of Zurich has a profit tax rate of 19.65%, the canton of Ticino has a tax rate of 19.16%, the canton of Valais has a tax rate of 17.12%, and Basel-City taxes companies at 13.04%.
Examining in more detail the profit and capital tax rates for the year 2023 in different Swiss cantons, the diversity and fiscal competition are clearly highlighted:
- Geneva Canton:
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- Profit tax: 13.99%
- Capital tax: 0.41%
- Lucerne Canton:
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- Profit tax: 12.34%
- Capital tax: 0.17%
- Zug Canton:
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- Profit tax: 11.80%
- Capital tax: 0.07%
- Vaud Canton:
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- Profit tax: 13.79%
- Capital tax: 0.16%
- Neuchâtel Canton:
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- Profit tax: 14.89%
- Capital tax: 0.51%
- Fribourg Canton:
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- Profit tax: 13.87%
- Capital tax: 0.21%
The Swiss fiscal map of 2023 highlights significant disparities in profit and capital tax rates among different cantons. These substantial variations create a diverse tax landscape, providing companies with the opportunity to choose more advantageous fiscal locations based on their specific needs. A thorough understanding of these disparities is essential for economic actors planning their operations in Switzerland.
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