Tax on the net profit of companies

The tax on the net profit of companies in Switzerland

All companies are subject to income tax if they are recognized as legal entities under private and public law. Therefore, what types of businesses are affected by this tax?

The companies concerned by this tax are:

Capital companies including S.A., SÀRL, cooperative companies, associations, foundations based in Geneva
Foreign companies that carry out activities based on industry, commerce, finance or service also based in Geneva or that are the owners of buildings in Geneva

There are two categories of taxes :

There are those who have to pay taxes on the totality of their net profit from all over the world (global profit).
And there are those who pay their taxes only on the net profit affiliated to the permanent establishment or the real estate property in Geneva.

It is worth noting that other unincorporated companies are not subject to taxation.

Income tax deductions

Some income is tax-deductible, such as social security contributions, including contributions to professional institutions and interest liabilities.

Accident insurance premiums are still tax-deductible, but with limits.

For employees, operating costs and fixed costs related directlyto the conduct of activities reamin also deductible tax. Investment funds in business activities are also exempt from income tax. The tax law imposes a proportional distribution of certain deductions against the tax exemption of part of the income.

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