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Special rules for SMEs
In many cantons, SMEs benefit from special relief, such as reduced tax rates or additional deduction options. These can include increased investment deductions or simplified depreciation rules. There are also support programs designed specifically for SMEs.
Tax incentives for sustainable investments
Investments in environmentally friendly technologies and sustainable projects can receive favorable tax treatment. Examples include solar installations, thermal insulation or other environmentally friendly technologies. In some cases, support programs or other tax advantages exist that support sustainable investments.
Loss offsetting
Business losses can be offset against future profits. This reduces the tax burden in later years. For direct federal tax, losses from the seven business years preceding the tax period can be deducted (Art. 67 DBG). On 19 December 2025, Parliament decided to extend this period to ten years; the extension will enter into force on 1 January 2028 at the latest. Until then, the seven-year period applies. Accurate documentation of the losses is required for correct offsetting.
Tax-free provisions
Companies can set up provisions for future obligations, which can reduce taxable profit. Examples include provisions for warranty obligations, maintenance, litigation risks or restructuring. Provisions must be justified and documented in a traceable way.
Interest deductions
Interest on borrowed capital can be deducted for tax purposes. This includes interest on business loans, leasing agreements or other forms of financing. Correct recording and documentation with receipts are necessary to claim interest deductions.
Special cases: start-ups and international companies
Depending on how they are structured, start-ups can benefit from tax relief, for example in the form of reduced tax rates or additional deduction options in their first years. The aim is to promote company formation and growth.
International companies are subject to special rules, for example regarding transfer pricing, foreign profits and double taxation agreements. These rules are intended to ensure correct taxation and can play an important role in tax planning.
OECD minimum taxation
Since 1 January 2024, the OECD minimum taxation of 15% has also applied in Switzerland. It affects multinational groups with consolidated annual revenue of EUR 750 million or more. The national top-up tax has been levied since 1 January 2024, the international top-up tax since 1 January 2025. For Swiss SMEs without an international group structure, nothing changes as a result.
Frequently asked questions about tax deductions for companies
Do tax deductions in Switzerland differ for private individuals and companies?
Yes. Private individuals mainly use deductions related to living costs and retirement provision. Companies can claim deductions for business expenses, investments and certain activities such as research and development.
Are there differences in tax deductions for corporations, partnerships and sole proprietorships?
Yes. Corporations generally claim deductions directly at company level. For partnerships and sole proprietorships, similar deductions often take effect in the personal tax return of the owners or partners.
How are a company’s income, assets and capital taxed in Switzerland?
Profit is taxed through profit tax. Equity is subject to capital tax. The amount depends on the canton and municipality. Deductions such as business expenses, depreciation or interest expenses can reduce the tax burden.
Which deductions can companies claim when their income is taxed?
Typical deductions are business expenses, depreciation on fixed assets, interest deductions on borrowed capital and, depending on the situation, deductions for research and development or sustainable investments.
Which deductions are possible when a company’s assets are taxed?
Provisions reduce profit and therefore, indirectly, the equity on which capital tax is levied. Depending on the situation, investments that affect equity can also have an impact on capital tax.