Switzerland Corporate Income Tax
Detailed corporate income tax rates and rules for Switzerland in 2026.
The federal corporate income tax rate is 8.5% on profit after tax (effective rate approximately 7.83% on profit before tax, since the tax itself is a deductible expense). Cantons and municipalities levy additional corporate income taxes at varying rates, resulting in combined effective corporate tax rates ranging from approximately 12% to 24% depending on location. The average combined effective rate across major Swiss business locations is approximately 14-18%. Cantons such as Zug, Lucerne, Nidwalden, and Appenzell Innerrhoden offer some of the lowest rates at around 12-13%, while Geneva and Zurich are closer to 19-22%. Switzerland implemented OECD Pillar Two minimum taxation from January 1, 2024, introducing a domestic top-up tax to ensure a minimum effective rate of 15% for large multinational enterprises with global revenues exceeding EUR 750 million.
Standard Rate
8.5%
Additional Notes
Switzerland reformed its corporate tax regime in 2020 under the Federal Act on Tax Reform and AHV Financing (TRAF), which abolished preferential tax regimes for holding companies, domiciliary companies, and mixed companies. New incentives were introduced, including a patent box regime (with up to 90% reduction of cantonal tax on qualifying patent income), additional R&D deductions (up to 150% of qualifying expenses in some cantons), and a notional interest deduction available in the canton of Zurich. Capital tax is also levied at the cantonal level on equity, with rates varying by canton. Losses can be carried forward for seven years. No loss carryback is available. Switzerland applies OECD-aligned transfer pricing rules.
How Switzerland Corporate Tax compares
Switzerland’s corporate tax rate of 18% is the 151st highest of 203 countries TaxAtlas tracks, below the global average of 22.2% and Europe’s regional average of 19%.
