Taxation of legal entities

The taxation of legal entities is primarily based on the provisions of the DBG and the StHG. The main subjects of taxation are profit and capital.

Taxation of Legal Entities

Examples of legal entities subject to taxation include corporations such as AGs, GmbHs, or limited partnerships by shares. Other legal entities include cooperatives, associations, and foundations. Legal entities with their headquarters or actual administration in Switzerland are considered unlimited tax liable. In such a case, the law speaks of personal affiliation. Conversely, legal entities with their headquarters or actual administration abroad, but with assets or sources of income in the country, are considered limited tax liable. In this case, the law refers to economic affiliation.

The tax liability for a legal entity begins with its formation or with the relocation of its seat to Switzerland. The tax liability ends with the completion of liquidation or the relocation of its seat abroad.

What is taxed?

At the federal level, only a profit tax is levied. At the cantonal and municipal levels, both a profit tax and a capital tax are levied. The subject of the profit tax is the net profit. The subject of the capital tax is the equity capital. What exactly is subject to profit tax is specified in Art. 24 StHG and Art. 58 DBG. What constitutes the subject of the capital tax is answered by Art. 29 StHG. Taxes are reassessed in each tax period. The tax period is considered to be the fiscal year. In order to perform the tax calculation, a financial statement with balance sheet and income statement must be prepared each calendar year, except in the year of establishment.

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