Capital tax

Swiss capital tax is levied by cantons and communes on the taxable equity of legal entities, such as share capital, reserves and certain retained earnings, with adjustments under cantonal rules. The Confederation does not levy a general capital tax on companies. Rates are usually low but vary by canton, and some cantons credit profit tax against capital tax or provide relief for qualifying participations or intra-group financing. The tax is conceptually separate from profit tax, which targets yearly net income.