What is Kapitalsteuer?
Kapitalsteuer is a cantonal tax levied on a company's net equity (paid-in capital plus reserves plus retained earnings). It is a purely cantonal and communal tax — there is no federal Kapitalsteuer. Rates are low (typically 0.001 to 0.5% of net equity annually) but it is a recurring annual cost even in loss years.
Current Rate (2025)
Cantonal only. Typical effective rates: Zug 0.035%, Zurich 0.172%, Berne 0.5%. No federal Kapitalsteuer.
Example
A Zurich AG with CHF 2,000,000 net equity pays approximately CHF 3,440 Kapitalsteuer at an effective rate of 0.172% per year — a modest but unavoidable annual cost.
How Kapitalsteuer works in Switzerland
Kapitalsteuer is Switzerland's annual wealth tax on corporations, levied on the net equity (Eigenkapital) of companies. It is distinct from and in addition to Gewinnsteuer on profits.\n\n**What is taxed**\nThe tax base is the company's equity as shown in the balance sheet: share capital (Aktienkapital or Stammkapital) plus legal reserves, voluntary reserves, and retained earnings. For tax purposes, some cantons allow a deduction for the value of participations in subsidiaries held at cost (to avoid double taxation of equity within a group).\n\n**Rate structure**\nRates vary significantly by canton and commune. Low-tax cantons such as Zug and Nidwalden have rates under 0.05%, while higher-tax cantons like Berne and Zurich have rates above 0.1%. The rate appears small but applies to the full equity base every year, making it significant for capital-intensive or cash-rich businesses.\n\n**Interaction with Gewinnsteuer**\nMany cantons allow companies to credit their cantonal Gewinnsteuer liability against the Kapitalsteuer bill — if you pay enough profit tax, your capital tax obligation is reduced to zero or near-zero. This credit mechanism means that profitable companies often pay little net Kapitalsteuer, while loss-making companies (who owe no Gewinnsteuer) bear the full Kapitalsteuer cost.\n\n**Why it matters**\nFor holding companies or cash-rich businesses with large equity but low annual profits, Kapitalsteuer can be a material recurring cost. A holding company with CHF 50,000,000 in participations and minimal profit could still owe CHF 25,000 to CHF 250,000 in annual Kapitalsteuer depending on the canton, even in a loss year.\n\n**Cantonal returns**\nKapitalsteuer is declared and assessed through the same cantonal tax return process as Gewinnsteuer. It is included in the same Steuererklärung (tax return) and assessed by the Kantonssteueramt.
Related terms
Gewinnsteuer is Switzerland's corporate profit tax. At the federal level, the direct federal tax (direkte Bundessteuer) is levied at a flat rate of 8.5% on profit after tax, which equates to an effective rate of approximately 7.83% on pre-tax profit. Cantons levy their own Gewinnsteuer on top, meaning the combined federal and cantonal effective rate varies by canton.
An AG (Société anonyme / Società anonima) is Switzerland's public limited company form. It requires a minimum share capital of CHF 100,000, of which at least 50% (minimum CHF 50,000) must be paid up on formation. Shares can be issued as registered shares (Namenaktien) or bearer shares (Inhaberaktien, now restricted). Governed by OR Articles 620–763.
A GmbH (Société à responsabilité limitée / Società a responsabilità limitata) is Switzerland's most common private limited company form. It requires a minimum share capital of CHF 20,000, all of which must be paid up on formation. Liability is limited to the company's assets. It is governed by the Swiss Code of Obligations (OR/CO), Articles 772–827.
Confused by Switzerland accounting jargon?
AccountsOS explains Switzerland terms in plain English and applies the right rules to your books automatically.
Try Free