Taxes are one of many sources of the city revenue. In the canton of Geneva, taxes on capital and reserves are part of these. This type of tax is levied at the municipal and cantonal levels each year. However, this contribution has been cancelled by the Swiss Confederation for the last twenty years. In Geneva, the cantonal tax is 1.8%, but it can reach 4.01% if it is combined with the communal tax. The 1.8% rate is applied to companies that make a taxable profit. If, on the other hand, the company’s profits are not taxable, the fee is 2%, which increases the combined municipal and cantonal taxes to 4.456%.
For new businesses, a special regime is offered. These new companies benefit from a three-year reduction in capital taxes by being exempted from the payment of cantonal surcharges. This reduces their taxes to 2.62% when adding the cantonal and municipal contributions. For companies with no taxable profit, this tax will be 2.96%. This special regime allows new companies to reduce their capital taxes by half, which will give a boost and an opportunity to newcomers. However, this reduction does not concern the basic cantonal tax, but only the cantonal additional tax on capital.
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