Corporate Tax Comparison Between Locations

The cheapest cantons for companies are in Central Switzerland: Zug (approx. 11.8% effective total burden), Nidwalden (approx. 12.0%), Lucerne (approx. 12.2%) and Appenzell I.Rh. (approx. 12.7%). Since the TRAF reform, traditionally expensive cantons like Basel-Stadt, Geneva and Vaud have also significantly reduced their rates. With a net profit of CHF 500,000, the difference between the cheapest and most expensive location can exceed CHF 45,000 per year. The exact tax per location is calculated by the corporate tax calculator.

Relocating an AG or GmbH requires a shareholder resolution, an amendment to the articles of association and registration in the commercial register of the new canton. The relocation is tax-free provided actual economic substance is present at the new location. Besides profit tax, further factors are relevant: capital tax (varies greatly between cantons), availability of skilled workers, infrastructure and cantonal economic promotion. For holding companies, the participation deduction is central; for innovative companies, the patent box and R&D super deduction.

For entrepreneurs it is worthwhile to also check the personal tax burden at the location alongside the corporate tax. The dividend vs. salary optimisation depends directly on the cantonal tax rate. And the tax comparison for individuals shows income and wealth tax in a municipality comparison.