Corporate income tax in Switzerland 2026: rates, reliefs and residence

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are deciding whether to put your business into a Swiss company, and where. This guide explains the 2026 profit tax rates, the reliefs and how profit reaches you. It also covers the residence rule that catches founders with foreign companies.

Switzerland corporate income tax in 2026: the key figures

What changed for 2026

• US-parented groups relieved. Switzerland applies the OECD Side-by-Side Package of 5 January 2026. US-parented groups are exempt from the IIR and UTPR top-ups from 2026; the Swiss QDMTT still applies (PwC, secondary).
• First minimum tax returns filed. The first GloBE Information Return was due on 30 June 2026 for calendar-year 2024 periods, through the FTA ePortal. From 2025 periods, it is due 15 months after year-end (PwC, secondary).
• Loss carry-forward to ten years. Parliament adopted the extension in December 2025. It takes effect on a date the Federal Council sets, at the latest 1 January 2028. In 2026 losses still carry forward seven years.
• Federal interest rates. Late-payment interest fell to 4.00% and interest on advance payments to 0.00% (FTA circular 215).

Is this guide for you?

Read on if you…

• are choosing between freelancing and a Swiss GmbH or AG;
• want to compare cantons for a new or relocated company;
• own a foreign company and spend most of your working time in Switzerland.

Probably not your case if you…

• only hold listed Swiss shares as a private investor (see capital gains tax in Switzerland);
• head the tax function of a large multinational: Pillar Two compliance goes beyond this guide.

How is a Swiss company taxed?

Companies face three layers, like individuals. The Confederation levies a flat 8.5% on net profit, as stated in the FTA's 2026 guide to corporate taxation. Each canton adds its own profit tax, and most municipalities share in it through multipliers.

Here's the detail that makes Swiss rates look higher than they are. Direct and indirect taxes are fully deductible federally and in all cantons. The 8.5% therefore applies to profit after tax. Divide 8.5 by 108.5 and you get about 7.83% of pre-tax profit.

Most cantons use a single flat rate. Basel-Stadt, Vaud, Valais, Bern, Schaffhausen and Neuchâtel use two or more tiers. Seventeen cantons also levy a minimum tax of CHF 50 to 900 where the ordinary tax is lower.

Capital tax. The Confederation abolished its capital tax on 1 January 1998. Cantons still tax equity, at rates from 0.001% to 0.5%.

Which companies are Swiss tax resident?

Under art. 50 DBG, a company with its seat or effective management in Switzerland is taxed on its worldwide profit and capital. Effective management means the place where day-to-day business is directed and key decisions are taken. A foreign company with a fixed place of business here has a Swiss permanent establishment.

Which canton has the lowest corporate tax rate?

The combined maximum rate on pre-tax profit ranges from 11.66% to 20.54% in 2026 (PwC, secondary). The gap is close to nine points on every franc of profit. It comes from cantonal tariffs and the cantonal and municipal multipliers, which change each year.

In practice, compare three things before you choose:

1. The exact municipality. Run it in the FTA tax calculator; multipliers differ within a canton.
2. Your personal tax there. As a founder, you pay income tax on salary and dividends where you live.
3. Available incentives. The patent box, R&D deduction and notional interest deduction vary by canton.

Cantons can also grant tax holidays or significant relief of up to ten years for qualifying new businesses.

What reliefs reduce a Swiss company's bill?

Participation relief

Dividends from holdings of at least 10% of share capital, or worth at least CHF 1 million, qualify for a participation deduction. There is no minimum holding period for dividends. Capital gains qualify if the company held at least 10% for at least one year. Relief covers only the gain above the original cost.

STAF incentives (since 2020)

• Patent box: income from qualifying patents can be exempt from cantonal tax by up to 90%, depending on the canton.
• R&D super-deduction: up to 50% extra on qualifying Swiss R&D costs, offered by most cantons.
• Notional interest deduction: only for companies resident in the canton of Zurich.

Deductions and losses

Costs follow the accounts, with FTA safe-harbour depreciation and arm's-length rules for related parties. Losses carry forward seven years in 2026, and ten years once the December 2025 extension takes effect (on a date set by the Federal Council, at the latest 1 January 2028). There is no carry-back. Details in business expenses in Switzerland.

Pillar Two: who pays the 15% minimum?

Only groups with worldwide revenue of at least EUR 750 million, reached in at least two of the four preceding years. Switzerland has applied a domestic top-up tax (QDMTT) since 1 January 2024 and the income inclusion rule (IIR) since 1 January 2025. The undertaxed profits rule (UTPR) has not been introduced. Smaller companies keep ordinary cantonal rates.

How do you get profit out of a Swiss company?

Corporate tax is only half the story. You still need to pay yourself.

Salary. It is deductible for the company. You pay income tax plus AHV/IV/EO of 5.3% each for you and the company, with no ceiling.

Dividends. They are not deductible. The company withholds 35% Verrechnungssteuer and pays it to the FTA. As a Swiss resident, you get it back if you declare the dividend and the shares (FTA withholding tax dossier). Claim within three years after the year it fell due.

If you hold at least 10%, only 70% of the dividend is taxed federally (art. 20 para. 1bis DBG). Cantons tax at least 50%. Corporate shareholders with 10% or more can use the reporting procedure instead of paying the 35%.

Compare the structures in legal forms of business in Switzerland.

Management-and-control warning. A Delaware LLC, UK Ltd or Estonian OÜ that you run from your Swiss flat has its effective management in Switzerland. Switzerland then taxes it as a resident company on worldwide profit. Treaties settle dual residence: see international tax treaties of Switzerland. Undeclared profit is evasion, covered in tax fraud regulations of Switzerland.

Filing and payment calendar

• Tax period: the business year.
• Return: deadlines are set by each canton.
• Provisional federal tax: usually due by 31 March of the year after the tax period.
• Assessment limits: the right to assess normally lapses five years after the tax period, with an absolute limit of 15 years. Closed years can be reopened for evasion for ten years.

Common mistakes (and what they cost)

• Incorporating in a low-tax canton while managing from another → the higher-tax canton can claim effective management and tax the profit there.
• Running a foreign company from Switzerland undeclared → Swiss profit tax on worldwide profit, with closed years reopened for up to ten years.
• Forgetting to reclaim the 35% withholding tax → the refund lapses three years after the year the dividend fell due.
• Paying the federal tax late → federal late-payment interest of 4.00% runs in 2026.
• Charging private costs to the company → they are added back as a constructive dividend, with 35% withholding tax due.

Frequently asked questions

What is the corporate tax rate in Switzerland in 2026?

The federal rate is 8.5% of profit after tax, about 7.83% of pre-tax profit. Cantons and municipalities add their own tax. The combined maximum rate on pre-tax profit ranges from 11.66% to 20.54%, depending on the location. Because taxes are deductible, published Swiss rates already reflect that effect.

Which Swiss canton is best for a company?

The one that fits both your company and your personal life. Combined rates span 11.66% to 20.54%, but you also pay personal tax on salary and dividends where you live. Check incentives such as the patent box or Zurich's notional interest deduction, and run your municipality in the FTA calculator.

How are dividends from a Swiss GmbH taxed?

The company withholds 35%, which a Swiss-resident shareholder recovers by declaring the dividend. With a holding of at least 10%, only 70% of the dividend is taxable federally and at least 50% cantonally. Dividends are not deductible for the company, so most founders combine a salary with dividends.

Does Switzerland apply the 15% global minimum tax?

Yes, to groups with worldwide revenue of at least EUR 750 million. Switzerland applies a domestic top-up tax since 2024 and the income inclusion rule since 2025. It has not introduced the UTPR. From 2026, US-parented groups are exempt from the IIR and UTPR, but not from the Swiss QDMTT.

Can I run my foreign company from Switzerland?

Not without consequences. If you take the key decisions from Switzerland, the company has its effective management here and becomes Swiss tax resident under art. 50 DBG. It then owes Swiss profit tax on worldwide profit. A treaty may resolve dual residence, but undeclared Swiss profit is tax evasion.

How long can a Swiss company carry losses forward?

Seven years in 2026. A federal act adopted in December 2025 extends this to ten years. The Federal Council sets the start date, at the latest 1 January 2028. The rule covers federal, cantonal and municipal profit tax. There is no carry-back.

Related guides

• Business expenses in Switzerland: deductions, depreciation and losses
• Legal forms of business in Switzerland
• International tax treaties of Switzerland
• Switzerland tax landscape overview
• Corporate income taxes in Austria
• Corporate income taxes in Malta
• All country tax guides

Sources

• Overview of corporate taxation (April 2026) – Federal Tax Administration
• Taxation of legal entities, full text (April 2026) – Federal Tax Administration
• Federal Direct Tax Act (DBG, SR 642.11), version of 1 January 2026 – Fedlex
• Federal withholding tax – Federal Tax Administration
• Circular 215: rates for 2026 – Federal Tax Administration
• Switzerland corporate taxes on income – PwC Worldwide Tax Summaries (secondary)
• Switzerland corporate significant developments – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.