Switzerland Corporate Income Tax

Corporate income tax rates, base and withholding

Companies pay a flat 8.5% federal profit tax (on profit after tax) plus cantonal and municipal profit tax, giving combined effective rates that differ markedly by canton. The figures below are 2025 figures for accountant review.

• Federal corporate income tax rate — 8.5% flat on profit after tax (≈7.83% on pre-tax profit) % (Federal Act on Direct Federal Taxation (DBG/LIFD))
• Combined effective CIT rate (federal + cantonal + municipal) — Approx. 11.85% to 21.6% depending on canton; national average ≈14.4% (2025) % ((approx — confirm)) (Federal Act on the Harmonisation of Direct Taxes of the Cantons and Communes (StHG/LHID))
• Lowest-rate canton (illustrative) — Zug, combined effective ≈11.85% % ((approx — confirm)) (Federal Act on the Harmonisation of Direct Taxes of the Cantons and Communes (StHG/LHID))
• Tax base — Worldwide profit per statutory accounts (with tax adjustments); income attributable to foreign permanent establishments and foreign real estate is excluded (Federal Act on Direct Federal Taxation (DBG/LIFD))
• Cantonal capital tax — Annual cantonal/municipal tax on equity (taxable capital); rate varies by canton, no federal capital tax (Federal Act on the Harmonisation of Direct Taxes of the Cantons and Communes (StHG/LHID))
• Participation relief on dividends/capital gains — Participation deduction effectively exempts qualifying dividends and capital gains (generally ≥10% holding or value ≥CHF 1 million) ((approx — confirm thresholds)) (Federal Act on Direct Federal Taxation (DBG/LIFD))
• TRAF tax reliefs — OECD-compliant patent box and R&D super-deduction available at cantonal level (relief capped, generally at 70% of taxable profit) ((approx — confirm cap)) (Federal Act on Tax Reform and AHV Financing (TRAF))
• OECD Pillar Two / QDMTT — Swiss Qualified Domestic Minimum Top-up Tax in force from 1 January 2024 for groups with revenue ≥EUR 750 million EUR (Ordinance on the Minimum Taxation of Large Corporate Groups (Pillar Two / OECD GloBE))
• Withholding tax on dividends — 35% federal withholding (Verrechnungssteuer); refundable to Swiss residents and reducible under tax treaties for non-residents % (Federal Act on Withholding Tax (VStG/LIA))
• Withholding tax on interest — 35% on interest from bonds and bank deposits; generally no WHT on ordinary loan interest % (Federal Act on Withholding Tax (VStG/LIA))
• Withholding tax on royalties — 0% — Switzerland levies no withholding tax on royalty payments % (Federal Act on Withholding Tax (VStG/LIA))
• Filing & payment — Annual return filed with the cantonal tax administration; deadline and provisional/final tax billing set per canton ((approx — confirm cantonal deadline)) (Federal Act on Direct Federal Taxation (DBG/LIFD))