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<\/strong><\/p>\n Dividends, interest, and royalties<\/strong>\u00a0are key sources of passive income for Swiss companies, especially in the\u00a0financial, technology, and holding sectors<\/strong>. However, they are not treated uniformly: each type is subject to specific accounting and tax rules at both the\u00a0federal and cantonal levels<\/strong>.<\/p>\n Here is a clear and structured overview of how these three income categories are treated in Switzerland.<\/p>\n <\/strong><\/p>\n <\/strong><\/p>\n <\/strong><\/p>\n Accounting<\/strong><\/p>\n Dividends received by a Swiss company are recorded as\u00a0financial income<\/strong>. They must be recorded on the date the distribution is\u00a0formally approved<\/strong>, typically at the general meeting convened by the board of another company<\/a>. <\/strong><\/p>\n Taxation<\/strong><\/p>\n <\/strong><\/p>\n Accounting<\/strong><\/p>\n Interest received is recognized on an\u00a0accrual basis<\/strong>, meaning it must be accounted for as it is\u00a0earned<\/strong>, regardless of when it is actually received.<\/p>\n <\/strong><\/p>\n Taxation<\/strong><\/p>\nDividends<\/strong><\/h3>\n
If the financial year closes before this date, a\u00a0transitory asset (receivable)<\/strong>\u00a0may be recorded if the event is deemed subsequent but known.<\/p>\n\n
Dividends distributed by Swiss companies are subject to\u00a035% withholding tax<\/strong>\u00a0at source. If the recipient is a Swiss resident company fulfilling its tax obligations, it may request\u00a0full and immediate reimbursement<\/strong>\u00a0via the notification procedure.<\/li>\n
Dividends are generally\u00a0taxable<\/strong>\u00a0in Switzerland. However, a\u00a0partial exemption<\/strong>\u00a0applies for qualifying participations (holding at least 10% or market value \u2265 CHF 1 million), under the\u00a0participation deduction regime<\/strong>.<\/li>\n
Usually subject to foreign withholding tax, but Switzerland has\u00a0double taxation treaties (DTAs)<\/strong>\u00a0allowing a\u00a0tax credit<\/strong>\u00a0or\u00a0partial refund<\/strong>, depending on the specific agreement.<\/li>\n<\/ul>\n<\/strong><\/h3>\n
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Interest<\/strong><\/h3>\n
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Certain types of interest, especially from\u00a0Swiss bonds or fiduciary deposits<\/strong>, are subject to\u00a035% withholding tax<\/strong>. This does\u00a0not automatically apply<\/strong>\u00a0to all intercompany loans. Swiss recipient companies can claim full reimbursement via\u00a0Form 25<\/strong>.<\/li>\n
Interest income is\u00a0fully taxable<\/strong>\u00a0as ordinary income.<\/li>\n
May be subject to\u00a0foreign withholding tax<\/strong>, usually reducible through\u00a0DTAs<\/strong>\u00a0signed by Switzerland.<\/li>\n<\/ul>\n<\/strong><\/h3>\n
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Royalties<\/strong><\/h3>\n