Every canton and commune applies a different tax rate. It is worth examining the rates before choosing the location of your head office or private residence.
The differences between cantonal and communal taxes mean that both companies and private individuals can save on their taxes by carefully choosing their location.
- Sole proprietorships are taxed at the place of the owner’s head office, and the tax applies to all of the company's profits, including the salary of the owner and the assets of the company. Only other income and personal assets are taxed at the home address of the owner.
- This rule also applies to general and limited partnerships. The only difference is that partners are taxed at the rate applicable at their home address.
- Corporations (sociétés anonymes) and limited liability companies (SARLs) pay tax on corporate profits and the tax on capital at the location of the head office. Shareholders, or partners, pay tax on their income dividends and their personal assets based on the location of their home address.