Limited tax liability
Limited tax liability means a person or entity is taxed only on income or assets connected to a taxing jurisdiction, not on worldwide income.
In Swiss tax law, limited tax liability typically concerns persons resident abroad or entities with their seat abroad that have a taxable connection to Switzerland or a canton. The tax base is restricted to the relevant Swiss-source income, Swiss assets, real estate, business premises, or permanent establishments. It contrasts with unlimited tax liability, which is based on residence, domicile, or seat and generally covers worldwide income or assets, subject to treaty relief and allocation rules.