A low corporate tax rate is only the first station

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. Inclusion is 70% for direct federal tax, with cantonal inclusion rates that differ: 50% in Zurich, Zug and Schwyz, 60% in Lucerne.

For the surrounding context, see GmbH versus AG.

Salary versus dividend

Salary attracts social-security contributions. For 2026 that is 10.6% AHV/IV/EO combined employer/employee and 2.2% unemployment insurance up to CHF 148,200.

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. Social-security practice works with a presumption 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 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.