Taxes on companies

Companies enjoy many favorable conditions, including the following:

Corporate taxation

Corporation tax, levied by the Swiss Confederation and by the cantons, varies between 20.75% and 23.6%. From 2019, this rate will be reduced for all companies in Vaud to 13.79%. It should be noted that the canton of Vaud is the first in Switzerland to have confirmed the reduction of its ordinary rate by popular vote.

Tax on capital

Tax on capital is only applied on a cantonal and municipal level and is less than 1%. The tax on capital is, however, attributed to income tax and is therefore only liable insofar as it exceeds corporation tax.

Special treatment

International service companies, auxiliary companies, and holdings also have the right to special treatment from the tax authorities of the canton of Vaud. Depending on the specific nature of their activities, these companies will be given a reduced municipal, cantonal, and sometimes even federal tax rate, which can also be zero in certain cases.

Temporary tax relief

Certain companies can also benefit from a partial or total relief on direct cantonal and municipal tax for a maximum period of 10 years.

Temporary tax relief apply to new companies – whether they are start-ups, foreign companies, or small and medium-sized businesses developing new commercial activities – which intend to operate in the long term in Vaud whilst promoting the economic interests of the canton. They target the sectors of industry and leading technologies, and also research and development activities, production and headquarters.