Business taxes in Switzerland: calculator for sole proprietors and companies
Choose a sector, a legal form and a tax system, enter your annual revenue and expenses — the calculator shows every tax and contribution, the total and what you keep.
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Legal forms
Sole proprietorship (Einzelfirma) Einzelunternehmen (Einzelfirma)
You run the business as an individual: there is no separate legal entity and you are liable with all your assets. Profit is taxed as your income; AHV/IV/EO contributions are paid as a self-employed person.
Requirements
Register as self-employed with the cantonal AHV compensation office (in Zurich: SVA Zürich); it decides whether you are recognised as self-employed (several clients, own risk).
Commercial register: compulsory once last year's turnover reached CHF 100,000 (Art. 931 OR); liberal professions only if run commercially. Voluntary entry is possible.
Bookkeeping: below CHF 500,000 turnover a record of income, expenses and assets is enough (“Milchbüchleinrechnung”, Art. 957 Abs. 2 OR); from CHF 500,000 — full bookkeeping and annual accounts.
VAT: registration is compulsory from CHF 100,000 turnover a year (Art. 10 MWSTG). Businesses handling food notify the cantonal food authority (Art. 20 LGV).
Profit is taxed as the owner's income: federal tax plus Zurich canton and city tax (progressive scales). AHV/IV/EO contributions are up to 10% of profit (reduced rate below CHF 60,500, minimum CHF 530) and reduce taxable income.
Conditions
Self-employed status is recognised by the AHV compensation fund (e.g. several clients, own business risk); entry in the commercial register is required from CHF 100,000 turnover.
VAT: registration is compulsory from CHF 100,000 turnover a year (Art. 10 MWSTG). Unemployment and accident insurance and the occupational pension (2nd pillar) are not compulsory for the self-employed; family allowance fund (FAK) contributions are compulsory but not included.
Limited company (GmbH) Gesellschaft mit beschränkter Haftung (GmbH)
The company is a separate legal entity that comes into existence with its commercial-register entry; partners are not personally liable because the capital is fully paid in. One person can be the sole partner and managing director.
Requirements
Founding is recorded by a notary (öffentliche Beurkundung), then entered in the commercial register; share capital at least CHF 20,000, fully paid in at founding into a blocked account (Art. 773 OR).
Full bookkeeping and annual accounts (Art. 957 OR); every year a company tax return for profit and capital tax; VAT registration from CHF 100,000 turnover.
On dividends the company withholds 35% tax (Verrechnungssteuer), refunded or credited to a resident owner. An owner without salary pays AHV as a non-employed person (minimum CHF 530).
CompanyGesellschaft mit beschränkter Haftung (GmbH)
A company in the city of Zurich pays profit tax: 8.5% federal + canton and city — about 19.5% of pre-tax profit in total. Dividends to an owner holding ≥ 10% are taxed only in part: 70% for federal tax, 50% for Zurich tax; no AHV contributions on dividends.
Conditions
Share capital at least CHF 20,000 (Art. 773 OR), entry in the commercial register. On dividends the company withholds 35% (Verrechnungssteuer) — a resident gets it back or credits it, so it is not a cost in the calculation.
An owner without salary pays AHV as a non-employed person (the calculation uses the CHF 530 minimum; more if assets, including the value of the shares, reach CHF 350,000). The tax office and AHV fund may treat part of the dividends as salary subject to contributions if no salary is paid.
Company limited by shares (AG) Aktiengesellschaft (AG)
The company is a separate legal entity with share capital; shareholders are not personally liable. Taxed like a GmbH; needs more capital.
Requirements
Founding is recorded by a notary, then entered in the commercial register; share capital at least CHF 100,000, of which at least CHF 50,000 paid in at founding (Art. 621, 632 OR).
Full bookkeeping and annual accounts (Art. 957 OR); every year a profit and capital tax return; VAT from CHF 100,000 turnover.
Dividends: 35% withholding (Verrechnungssteuer), refunded to a resident; an owner without salary pays AHV as a non-employed person (minimum CHF 530).
Taxed exactly like a GmbH: about 19.5% profit tax in Zurich, partial taxation of dividends (70% / 50%). It differs by a higher capital requirement and shareholder anonymity.
Conditions
Share capital at least CHF 100,000, of which at least CHF 50,000 paid in at formation (Art. 621, 632 OR). Otherwise as for the GmbH (35% dividend withholding is refunded; an owner without salary pays AHV as non-employed).
Software development, IT services, consulting for companies and entrepreneurs.
Income and profit taxes and AHV contributions do not depend on the sector: all three forms are available and the calculation is the same.
VAT 8.1%, registration from CHF 100,000 turnover (Art. 10 MWSTG). Under the net tax rate method (Saldosteuersatz) IT services pay 6.2% of gross turnover instead of deducting input tax — if turnover is up to CHF 5.024 million and tax up to CHF 108,000 a year.
Commercial register: compulsory once last year's turnover reached CHF 100,000 (Art. 931 OR); liberal professions only if run commercially. Voluntary entry is possible.
Other business services draft — data being checked
Marketing, design, translation, engineering, bookkeeping and other professional services to companies.
Income and profit taxes and AHV contributions do not depend on the sector: all three forms are available and the calculation is the same.
VAT 8.1%; ESTV net tax rates: consulting 6.2%, advertising income 5.3% of gross turnover.
Commercial register: compulsory once last year's turnover reached CHF 100,000 (Art. 931 OR); liberal professions only if run commercially. Voluntary entry is possible.
Services to individuals draft — data being checked
Household services, repairs, beauty, tutoring, photography — for private customers.
Income and profit taxes and AHV contributions do not depend on the sector: all three forms are available and the calculation is the same.
VAT 8.1%; ESTV net tax rates: hairdressing services 5.3%, photographers 5.3%, repairs (“Reparaturen aller Art”) 4.5% of gross turnover.
Commercial register: compulsory once last year's turnover reached CHF 100,000 (Art. 931 OR); liberal professions only if run commercially. Voluntary entry is possible.
Trade in goods draft — data being checked
Retail and wholesale, including an online shop (excluding excise goods).
Income and profit taxes and AHV contributions do not depend on the sector: all three forms are available and the calculation is the same.
VAT 8.1%, food, books and medicines 2.6%. Net tax rates for trade are low: goods at the standard rate 2.1%, at the reduced rate 0.6% of gross turnover; compare with the effective method at your margin.
Selling food: notify the cantonal food authority (Art. 20 LGV). Commercial register from CHF 100,000 turnover (Art. 931 OR).
Manufacturing draft — data being checked
Making and selling your own products: food, furniture, clothing, handmade goods.
Income and profit taxes and AHV contributions do not depend on the sector: all three forms are available and the calculation is the same.
Food production: notify the cantonal food authority (Art. 20 LGV); businesses working with food of animal origin generally need a permit (Art. 21 LGV).
VAT: food 2.6%, other goods 8.1%; net tax rate e.g. for bakery / confectionery production 0.1% of gross turnover.
Assumptions
Location: city of Zurich (as in the salary calculation for Switzerland): cantonal multiplier 95%, city 119% (129.03% for companies, including church tax on legal entities), personal tax CHF 24. Other cantons and municipalities have different rates.
One owner resident in Switzerland, single, no children, no employees, no other income or assets, full year; no personal church tax, no pillar 3a or pension fund contributions; insurance premium deduction at the maximum for people without pillar 2/3a (CHF 2,700 federal, CHF 4,350 Zurich).
AHV/IV/EO for the sole proprietor: 10% (sliding scale from 5.371% for income of CHF 10,100–60,500), based on profit before the contributions themselves, no equity interest deduction; plus the SVA Zurich administrative fee. Family allowance fund (FAK) contributions, wealth and capital taxes and VAT are not included.
GmbH / AG: the owner is the sole shareholder (100%) without salary; company taxes are deductible from profit; profit after tax is either paid out in full as dividends or kept in the company.
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