Tax and compliance for a business in Switzerland: what to know

Snapshot

A business in Switzerland deals with VAT, corporate income tax at federal, cantonal, and communal level, social security on salaries, and bookkeeping and register duties. Many figures depend on the canton and the legal form. Figures here are as of 27 January 2026.

VAT registration: Generally required once worldwide taxable turnover reaches CHF 100,000 a year. Standard rate 8.1 percent. Verify with the Federal Tax Administration.
Corporate tax: Federal rate 8.5 percent on profit after tax, plus cantonal and communal tax. Combined effective rates vary widely by canton.
Social security: Employers and employees pay old age and survivors insurance and other contributions on salary.
Ongoing duties: Proper accounts, beneficial owner registration, and audit rules depending on size and legal form.

Fees and features as of 27 January 2026Last reviewed 27 January 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business in Switzerland generally registers for VAT once worldwide taxable turnover reaches CHF 100,000 a year, with the standard VAT rate at 8.1 percent as of 27 January 2026. Company profit is taxed at federal, cantonal, and communal level, with a federal rate of 8.5 percent on profit after tax and combined effective rates that vary widely by canton. Employers pay social security on salary, and companies in the commercial register must keep proper accounts and may face audit and beneficial owner registration duties. These rules change and depend on the canton and legal form, so confirm the current position with the Federal Tax Administration, your canton, or a qualified adviser.

VAT in Switzerland

A business generally must register for Swiss VAT once worldwide taxable turnover reaches CHF 100,000 a year, with a higher threshold of CHF 250,000 for certain nonprofit, cultural, and sports associations. The standard VAT rate is 8.1 percent, with reduced rates for some goods and services such as food and books and a special rate for accommodation. From 2025 many smaller businesses can file VAT annually rather than quarterly, and certain digital platforms can be liable for VAT on sales made through them. Confirm your obligations with the Federal Tax Administration. As of 27 January 2026.

Corporate income tax

Company profit is taxed at three levels. The direct federal tax is 8.5 percent on profit after tax, and cantons and communes add their own tax, so the combined effective rate depends on where the company is based. As of 27 January 2026, combined effective rates ranged broadly from around 12 percent in the lowest tax cantons to around 21 percent in the higher ones. Because the rate turns on the canton and commune, check the position for your specific location with the canton or a qualified adviser.

Social security and payroll

Employers and employees each pay old age and survivors insurance and related contributions on salary, along with further duties such as accident insurance. A company with employees registers with the relevant compensation office and pays contributions on the payroll. Rates and thresholds are set by law and change, so verify the current figures before you rely on them. As of 27 January 2026.

Bookkeeping and the commercial register

Companies entered in the commercial register, such as a GmbH or an AG, must keep proper accounts that show the financial position clearly, and a sole proprietor must register once turnover passes CHF 100,000. Corporations are generally subject to audit, though small companies can opt out of an ordinary audit under certain conditions. Many entities must also register their beneficial owners within a set period of entry in the register. Duties vary by legal form and size, so confirm what applies to your company with a qualified adviser. As of 27 January 2026.

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Questions about tax and compliance in Switzerland

When must a Swiss business register for VAT?

A business generally must register for Swiss VAT once worldwide taxable turnover reaches CHF 100,000 a year, with a higher CHF 250,000 threshold for certain nonprofit, cultural, and sports associations. The standard VAT rate is 8.1 percent, with reduced rates for some goods and services. As of 27 January 2026. Verify with the Federal Tax Administration or your adviser.

How much corporate tax does a Swiss company pay?

Profit is taxed at federal, cantonal, and communal level. The direct federal rate is 8.5 percent on profit after tax, and combined effective rates vary widely by canton, broadly from around 12 percent to around 21 percent. The exact rate depends on the canton and commune. As of 27 January 2026. Verify with your canton or adviser.

What ongoing compliance does a Swiss company have?

Companies entered in the commercial register must keep proper accounts, and many must register beneficial owners and meet audit rules unless exempt as a small company. Employers must register for social security and pay contributions. Duties vary by legal form and size. As of 27 January 2026. Verify with your adviser.

Does a business pay social security in Switzerland?

Yes. Employers and employees each pay old age and survivors insurance and other social contributions on salary, and there are further duties such as accident insurance. Rates and thresholds are set by law and change. As of 27 January 2026. Verify the current position with your adviser.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 27 January 2026. Confirm current terms with the provider before applying.