GmbH taxes in Switzerland
As a legal entity, a GmbH (limited liability company) pays its own taxes – and its distributions are taxed too (known as economic double taxation). That sounds expensive, but the right mix of salary and dividends and the choice of location can reduce it noticeably. Here are the basics.
Profit tax and capital tax
The GmbH pays profit tax (federal, cantonal, municipal) on its profit and capital tax on its equity. Key point: the tax burden varies considerably from canton to canton – in low-tax cantons such as Zug, Nidwalden or Lucerne you pay significantly less than elsewhere. Your registered office is a tax decision.
Salary or dividend? – the biggest lever
As a shareholder-managing director, you pay yourself a salary and/or dividends. A salary reduces the company's profit but incurs social security contributions; dividends are taxed at a reduced rate, but twice. Rule of thumb: first a customary market salary (compliant with AHV, old-age and survivors' insurance), the rest as dividends – the optimal mix depends on the amounts and the canton.
VAT – and planning with planix
From CHF 100'000 in annual turnover, the GmbH must register for VAT (MWST) with the Swiss Federal Tax Administration; below that, registration is voluntary. planix calculates salary, dividends and tax burden directly in your financial plan so you are optimally set up from the start – free of charge.
Frequently asked questions
How is a GmbH taxed in Switzerland?
With profit tax on its profit and capital tax on its equity. In addition, salary (social security contributions, income tax) and dividends are taxed. The canton has a strong influence on the amount.
Is salary or dividend better?
Usually a mix: a customary market salary plus dividends. The optimum depends on the amounts, the canton and your social insurance situation – planix helps you calculate it.
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