Finances · Taxes
Who pays what.
And how much.
Switzerland has three tax authorities: the Confederation, the canton and the municipality. For the self-employed and companies this means: legal form, residence and registered office make a big difference.
Effective profit tax rates 2024
Federal + cantonal + municipal (capital city), corporations. Source: KPMG Swiss Tax Report 2024/25.
Two worlds
Sole proprietorship vs. corporation
The legal form determines who pays the tax – you personally or the company.
Sole proprietorship / partnership
Taxed transparently
Company profit = your income. One tax subject: you.
- Type of tax
- Income
- Marginal rate
- up to 45%
- OASI / DI / LCI
- 5.37 – 10%
- Double taxation
- No
LLC / Corporation
Taxed independently
The company pays profit tax, you pay income tax on salary and dividends.
- Effective profit tax
- 11.85 – 20.5%
- OASI on salary
- 13.0%
- OASI on dividend
- 0%
- Double taxation
- partial
Conversion can be tax-neutral
Optimisation
Salary vs. dividend
As the owner of an LLC or corporation, you can draw money from the company in two ways. The mix determines how much reaches you net.
A · 100% salary
Everything paid out as AHV-liable salary
B · 100% dividend
No salary, entire profit distributed
C · Mix (recommended)
Salary up to BVG threshold, rest as dividend
Illustrative example based on CHF 150,000 company profit, canton of Zurich, sole owner ≥ 10% stake. Actual figures vary by canton, marital status and pension situation.
Rule of thumb
Salary up to the BVG ceiling (coordinated salary ~CHF 88,200) or in line with industry norms. The rest as dividend. Too little salary → the OASI compensation office reclassifies it as "hidden salary".
Salary in detail
Subject to OASI/DI/LCI (~13%), pension-eligible, fully deductible as personnel expense. Secures pension and unemployment insurance entitlement, but immediately reduces company profit.
Dividend in detail
No OASI contributions – but double taxation: the company pays profit tax, you pay income tax. Partial taxation: only 70% (federal) or 50–70% (cantonal) counts, provided the stake is ≥ 10%.
Example calculation · Marc, LLC owner
CHF 150,000 company profit, canton of Zurich
A · 100% salary
Highest OASI/tax burden, full pension coverage
CHF 82,500
B · 100% dividend
No OASI/pension – coverage gap
CHF 100,500
C · Mix (recommended)
Pension secured, taxes optimised
CHF 96,000
Simplified model calculation. Canton, municipality, marital status, child deductions and other income shift the result.
Interactive calculator
Do the math
Choose the canton, profit and salary/dividend split. The calculator shows your net result and effective total burden.
CHF 150'000
60% salary / 40% dividend
Minimum salary (BVG threshold): CHF 22'680
Deduct instead of pay
What the self-employed can deduct
Everything that is "justified by business need". Key figures first – details on click.
Home office
pro-rata
▾
Home office
pro-rata
Vehicle
CHF 0.70/km
▾
Vehicle
CHF 0.70/km
Pillar 3a
CHF 36,288
▾
Pillar 3a
CHF 36,288
BVG buy-in
fully deductible
▾
BVG buy-in
fully deductible
Further education
up to 12,900
▾
Further education
up to 12,900
Business meals
with receipt
▾
Business meals
with receipt
Equipment
pro-rata
▾
Equipment
pro-rata
Travel & expenses
100%
▾
Travel & expenses
100%
Spread across the year
Tax planning in the calendar
Optimising taxes is not a December task. Those who plan throughout the year save more.
Closing & filing
Close last year's accounts, file the tax return (extension usually possible until 30.9).
Provisional invoice
You receive the cantonal advance-payment invoice around May. If profit is lower: request an adjustment and save interest.
Interim review
Prepare a profit forecast. Build provisions (25–30% of profit) for taxes and OASI.
Optimise before year-end
Pay into pillar 3a (by 31.12), buy into BVG, bring forward investments, time outstanding invoices deliberately.
The canton checks closely