Preparation Tax Aspects
Here you can see an overview of the different tax rates for partnerships and corporations.
Taxation of Corporations (GmbH & AG)
- Company generates profits
- These profits are taxed at the corporate tax rate
- Tax on capital is paid on the company's equity
- A separate tax return is prepared for the company
- The shareholders/members receive dividends accordingly
- These dividends must be taxed for the shareholders/members as capital gains
- If a shareholder /member owns more than a 10% stake in the company, only about 50% (depends on the canton) of the dividends must be taxed
- If the company's profits are not paid out as dividends, then the tax rate is initially lower than for a partnership
- For dividend payments, there is the problem of double taxation
Taxation of Partnerships (sole proprietorship and limited liability company)
- Business owner generates profits
- These profits must be taxed at the owner's personal tax rate
- Wealth tax must be paid on the assets
- No separate tax return is needed for the company
- The owners are entitled to all profits
- The owners can access all profits without further taxation
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