Europe · Tax guide
Switzerland
Switzerland taxes company profits at three levels — federal, cantonal and communal — for about 12% to 21% depending on the canton, charges VAT at 8.1%, levies a refundable 35% withholding tax on dividends, and applies the global minimum tax. Federal taxes are administered by the Federal Tax Administration (ESTV) and profit taxes by the cantons.
At a glance
- Combined profit tax
- about 12% to 21%
- Federal profit tax
- 8.5%
- VAT
- 8.1%
- Withholding on dividends
- 35%
- Social security (AHV/IV/EO)
- 10.6%
- Global minimum tax
- 15%
Depending on the canton
Charged on profit after tax
Reduced and special rates 2.6% and 3.8% (accommodation)
Refundable or reduced by treaty
Split between employer and employee
Groups with revenue of €750 million or more
Profit tax
Companies pay federal profit tax at 8.5% plus cantonal and communal taxes, for a combined about 12% to 21% depending on where they are based. Cantons also levy a capital tax on equity. Returns are filed with the cantonal tax office, which assesses both cantonal and federal tax.
VAT
VAT is charged at 8.1%, with rates of 2.6% and 3.8% (accommodation). A business supplying in Switzerland must register once its worldwide turnover reaches CHF 100,000. Returns are normally quarterly. Liechtenstein shares the Swiss VAT area.
Withholding tax
Dividends carry 35% Swiss withholding tax, which Swiss residents can reclaim in full and foreign recipients reduce under treaties or the Swiss–EU arrangement. Interest on most loans and royalties carry no federal withholding tax.
Employers
Employers deduct and pay old-age, disability and income-compensation contributions (AHV/IV/EO) of 10.6% of salary, split equally, plus unemployment insurance and occupational pension contributions. Foreign employees without a settlement permit pay tax at source.
Transfer pricing, property and the global minimum tax
Related-party transactions must be at arm's length. Groups with revenue of CHF 900 million or more file country-by-country reports, and groups with €750 million or more are subject to the global minimum tax at 15%.
Cantons charge real estate transfer tax of 0% to about 3.3%, and real estate gains are taxed separately by the canton.
Key dates
- Quarterly, within 60 daysVAT returns and payment
- Within 30 days of a dividendWithholding tax return and payment (Form 103)
- Annually, by the cantonal deadlineProfit and capital tax return
Figures and sources
11 figures- Combined federal, cantonal and communal profit tax, depending on the cantonabout 12% to 21%Under professional review
- VAT standard rate8.1%Checked against the official source
- Swiss withholding tax on dividends (refundable or reduced by treaty)35%Checked against the official source
- Federal profit tax rate (on profit after tax; about 7.8% effective)8.5%Under professional review
- VAT reduced and special rates2.6% and 3.8% (accommodation)Checked against the official source
- Old-age, disability and income-compensation contributions (AHV/IV/EO), split equally10.6%Checked against the official source
- Global minimum tax rate (domestic top-up from 2024, income inclusion rule from 2025)15%Checked against the official source
- Group revenue for the global minimum tax€750 millionChecked against the official source
- Worldwide turnover from which a business supplying in Switzerland must register for VATCHF 100,000Checked against the official source
- Group revenue for country-by-country reportingCHF 900 millionChecked against the official source
- Cantonal real estate transfer tax0% to about 3.3%Under professional review
Indicative only. This assessment is a high-level overview of tax obligations in Switzerland based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Swiss tax expert (dipl. Steuerexperte) before making compliance decisions.