The different types of taxes

Types of taxes for companies in Switzerland

People wishing to create a company in the canton of Geneva should know that as a legal entity, they will have to respect several tax obligations. They have to pay 08 different taxes to be more precise:

  1. Taxes to be paid related to the creation of companies. (or capital increase)
  2. Tax on net profit: This tax concerns capital companies based in Geneva, whether they are local or foreign companies.
  3. Capital and reserve taxes: for legal entities, these are cantonal or municipal taxes.
  4. Special property tax or real estate tax levied by the canton
  5. Tax on distributed profits (withholding tax). All laws related to this tax can be seen in the Corporate Tax Reform Act II applicable since 2009.
  6. Stamp duty: Tax to be paid by existing companies or those who want to increase their capital. This duty is levied at a rate of 1% and certain actions are exempted from it, such as mergers or demergers.

The tax period in the canton of Geneva is divided into 3 phases:

  1. First of all, the period of tax determination during which the various calculations necessary to assess the amount of tax to be paid are carried out.
  2. Next, the repayment period or tax period. This phase includes the finalization of all balance sheets and the payment of taxes due.
  3. And finally, the tax period in which the amount of taxable and non-taxable income and capital is determined.

Individuals must also pay various taxes such as: federal, municipal and cantonal taxes. These various taxes must be adjusted each year. As a result, the tax refund due in the current tax year is calculated based on the income received in the calendar year that corresponds to that year.

For companies or legal entities, the tax refund period runs concurrently with the tax assessment period. The tax of a current year is therefore to be calculated on the basis of the business year closed at the end of that business year even if the business year was closed during the calendar year.

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