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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