Corporate profit tax
The Confederation levies 8.5% on profit after tax, which corresponds to roughly 7.8% on pre-tax profit because tax is deductible. Cantonal and communal tax sits on top.
For the surrounding context, see Swiss company formation.
The source’s 2026 effective headline examples for cantonal capitals are:
| Location |
Effective corporate profit tax, source benchmark 2026 |
| Lucerne |
11.66% |
| Zug |
11.71% |
| Zurich |
19.47% |
| Swiss average |
14.43% |
Always calculate the actual commune and company profile.
Dividend withholding
A Swiss company generally withholds 35% Swiss anticipatory tax on a dividend. For a Swiss-resident shareholder who properly declares the dividend and underlying participation, the amount is normally credited/refunded under the statutory system rather than being the final tax rate.
If this decision changes the viability or sequence of your move, a Swiss relocation strategy consultation can apply it to your own facts.
Partial taxation
For qualifying substantial participations, generally at least 10%, Switzerland reduces the portion of dividend included in taxable income. The source uses 70% inclusion for direct federal tax, with cantonal inclusion rates that differ: it cites 50% in Zurich, Zug and Schwyz and 60% in Lucerne.
For the surrounding context, see GmbH versus AG.
Salary versus dividend
Salary attracts social-security contributions. The source uses 10.6% AHV/IV/EO combined employer/employee and 2.2% unemployment insurance up to CHF 148,200 in its 2026 example.
A founder cannot simply set salary at an implausibly low amount and extract everything as dividend. Compensation offices can reclassify an excessive dividend as salary where the salary/dividend relationship is obviously inappropriate. The source notes a practical presumption used in social-security practice around dividends at 10% or more of the company’s tax value, alongside comparison with market salary.
VAT
Swiss VAT liability generally arises above CHF 100,000 of relevant worldwide turnover. Current rates in the source are 8.1% standard, 2.6% reduced and 3.8% accommodation.
For the surrounding context, see Swiss business banking.
Optimise the chain, not one tax line.
General information on Swiss law and practice, not individual legal, tax or investment advice.
