Direct federal tax

Direct federal tax is levied by the Confederation on the income of individuals and on the profit of legal entities. Cantonal tax administrations generally handle assessment and collection alongside cantonal taxes, using coordinated procedures but applying federal substantive rules and rates. For individuals it does not include a federal wealth tax; wealth taxation is cantonal and communal. For companies, direct federal tax focuses on net profit, while capital tax is cantonal. Because federal and cantonal assessments often run in parallel, facts declared in one procedure can influence the other, though legal bases and tariffs differ.