Structure & legal steps

Business taxation in Switzerland: what every entrepreneur needs to know

Federal, cantonal, municipal: companies are taxed at three levels, whatever their legal form. And for corporations, the mechanism of economic double taxation deserves particular attention.

Three levels of taxation

Companies, whatever their legal form, are taxed at three levels: federal, cantonal and municipal. Legal entities (for example SAs or Sàrls) are taxed on profit and capital.

Economic double taxation

Economic double taxation of profit occurs when profit is distributed to partners (Sàrl) or shareholders (SA). The distributed share of profit is taxed first through the company's profit tax, and then a second time through the personal income tax of the individuals concerned (partners or shareholders).

The same applies to capital: it is taxed as such at company level, and a second time for partners on their shares in the Sàrl or for shareholders on their shares in the SA (wealth tax).

A tax that varies by location

Note that business taxation depends heavily on the canton and municipality where the company is located. This can be a factor in choosing your company's registered office, although it should obviously not be the only criterion.

Plan ahead rather than be caught out

Include the tax burden in your financial plan from the start and, if in doubt, get advice from a fiduciary or tax specialist. The full list of taxes for entrepreneurs is available on the Confederation's SME portal.