Swiss Corporate Tax
Swiss corporate tax — 11.71% in Zug.
Among the lowest in Switzerland.
Switzerland taxes corporate income at three levels: federal (7.83% effective), cantonal, and municipal. In Zug — where Goldblum & Partner is based — the combined effective rate is 11.71% — among the lowest in Switzerland (Lucerne, at about 11.66%, is marginally lower as of 2026). The participation exemption, patent box, and R&D super-deduction reduce effective rates further for qualifying structures.
11.71%
Zug combined rate
7.83%
Federal effective rate
35%
Dividend withholding tax
8.1%
Standard VAT rate
Key Data
Corporate Tax Rate by Canton
Combined effective CIT rate (federal + cantonal + municipal), 2026
Tax Rates
Swiss corporate income tax —
federal, cantonal, and municipal
Switzerland uses a three-tier corporate tax system: federal, cantonal, and municipal. The federal rate is fixed across all cantons. The cantonal rate is the primary planning variable — and Zug's rate of 11.71% combined is among the lowest in Switzerland (KPMG Clarity on Swiss Taxes 2025); Lucerne, at about 11.66%, is marginally lower as of 2026.
Three-tier tax breakdown — Zug canton
DBG Art. 68
Applied on net profit after cantonal/municipal taxes. The statutory rate of 8.5% is applied to the pre-tax result; the effective federal rate is approximately 7.83%.
KStG Zug
Cantonal multiplier of 80% on cantonal basic tax, with Zug municipality at 58%. Results in ~3.88% additional burden. Other cantons range significantly higher.
KPMG Clarity 2026
Among the lowest combined effective corporate income tax rates in Switzerland (Lucerne, at about 11.66%, is marginally lower as of 2026). Applies to standard operating companies. Holding structures eligible for participation exemption may see effective rates below 1% on dividend income.
Combined effective CIT — selected cantons (KPMG 2025)
11.71% vs. 25% UK
Zug advantage on CHF 500,000 profit
On CHF 500,000 profit: Zug taxes approximately CHF 59,250 total. UK at 25% would tax CHF 125,000. The annual saving of approximately CHF 65,750 compounds materially across a multi-year holding or operating structure. Within Switzerland, the spread between Zug (11.71%) and Bern (20.54%) alone is nearly 9 percentage points — CHF 43,450 per CHF 500,000 profit.
Tax Reliefs
Four mechanisms that reduce
your effective Swiss tax rate
Switzerland's post-STAF (2020) tax framework provides four statutory mechanisms that reduce the effective corporate tax rate for qualifying companies — without requiring a special ruling or advance pricing agreement.
Participation exemption
DBG Art. 69–70Up to 100% relief on qualifying dividends
Dividends and capital gains from qualifying participations are effectively exempt from federal and cantonal corporate tax. Threshold: ≥10% ownership OR ≥CHF 1,000,000 fair market value. Minimum holding period for capital gains treatment: 1 year.
Patent box
StHG Art. 24a–24bUp to 90% reduction on qualifying IP income
Up to 90% reduction of qualifying net IP income from the cantonal taxable base. Available in all 26 cantons since the STAF reform (effective 1 January 2020). Combined benefit cap: patent box + R&D super-deduction cannot together exceed 70% of cantonal taxable profit.
R&D super-deduction
StHG Art. 25aUp to 150% deduction on qualifying R&D expenditure
Qualifying R&D expenditure can be deducted at up to 150% (vs. standard 100%) from the cantonal taxable base. Cantonal-level relief only — no federal equivalent. Combined with the patent box, subject to the 70% cap on cantonal taxable profit.
Loss carryforward
DBG Art. 677-year loss carryforward
Tax losses can be carried forward and offset against future taxable profits for up to 7 years. No loss carryback provision. Losses not utilised within 7 years are forfeited. No restriction on the amount that can be carried forward within the 7-year window.
Dividend withholding tax (VStG)
35%
Federal withholding tax applied to dividends at source. Swiss resident shareholders reclaim via personal tax return. Foreign shareholders recover to treaty-reduced rates (typically 0–15%) via the applicable double taxation treaty. Switzerland has DTTs with 100+ jurisdictions.
Participation exemption eliminates effective tax on qualifying dividend income at the corporate holding level (DBG Art. 69).
VAT / MWST (MWSTG)
Applies to most goods and services (MWSTG, in force 1 January 2024).
Food, books, newspapers, medicines, agricultural goods.
Hotel and accommodation services.
Annual worldwide turnover. Mandatory registration above this threshold (MWSTG Art. 10).
OECD Pillar Two — impact on standard clients
Switzerland implemented the OECD global minimum corporate tax (15% floor) via QDMTT from 1 January 2024 and IIR from 1 January 2025. This applies only to MNE groups with consolidated annual revenue exceeding EUR 750 million. For the majority of foreign entrepreneurs and SMEs forming a Swiss AG or GmbH, Pillar Two is not relevant — the 11.71% Zug rate remains fully available without any top-up obligation.
FAQ
Frequently asked
questions
Precise answers to the most common questions about forming a company in Switzerland. For specific advice on your structure, book a free consultation.
Free consultationOfficial Sources
- ESTV — Corporate Tax Overview
Swiss Federal Tax Administration — corporate tax for legal entities
- DBG Art. 69–70 — Participation Exemption
Federal Direct Tax Act — dividend relief for qualifying holdings
- StHG Art. 24a — Patent Box
Tax harmonisation act — IP income reduction up to 90%
- Canton Zug Tax Rates
Official Zug cantonal tax authority — 11.71% effective rate
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Baarerstrasse 25 · 6300 Zug · Switzerland · Est. 2007