Obwalden Corporate & Capital Tax Rates
Last updated: 09 Dec 2025
Obwalden Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of Obwalden: flat cantonal profit tax for all juristic persons, ultra-low capital tax on equity, minimum tax mechanisms (including a fixed CHF 500 minimum and a property-based minimum), approximate effective combined burdens (including federal tax), and tools to model the tax load for companies.
Overview
Companies in Obwalden pay a combination of:
- Cantonal/communal profit tax on taxable profit;
- Cantonal capital tax on equity at an ultra-low per-mille rate; and
- Direct federal corporate income tax on profit.
For capital companies and cooperatives (Kapitalgesellschaften und Genossenschaften), Obwalden applies a flat profit tax rate on net profit and a very low capital tax on equity. The profit tax rate is set in the cantonal tax act, while the capital tax parameters were substantially reduced as part of the canton’s tax strategy and the implementation of the Swiss corporate tax reform (STAF).
In addition, Obwalden applies minimum tax rules for companies: a general minimum tax amount for capital companies and cooperatives, and a separate property-based minimum tax on real estate held in the canton. These mechanisms can become relevant in low-profit or loss years or for asset-rich structures.
This page summarises the core statutory parameters and shows how they translate into combined profit and capital tax burdens for corporate groups considering Obwalden as a location.
Statutory Cantonal & Capital Rates (Capital Companies & Cooperatives)
The following table summarises the key Obwalden profit and capital tax parameters for capital companies and cooperatives in recent years. Obwalden combines a low flat profit tax with one of the lowest capital tax burdens in Switzerland.
| From / to | Profit tax (Kapitalgesellschaften & Genossenschaften) | Capital tax on equity (Kapitalsteuer) | Minimum tax on companies | Comment |
|---|---|---|---|---|
| From 1 Jan 2008 until 31 Dec 2019 |
Flat cantonal profit tax rate of 6% of net profit for capital companies and cooperatives (following a reduction from 6.6% in earlier years). |
Capital tax of 2.0‰ (0.2%) of taxable equity for ordinarily taxed companies; reduced rate of 0.01‰ (0.001%) for status companies (e.g. holding and domiciliary companies) under the old regime. |
Introduction of a minimum tax for capital companies and cooperatives (CHF 500) for low tax load situations. | Obwalden shifts from a high-tax to a low-tax canton, introducing a flat tax system for individuals and markedly reducing corporate profit tax. Capital tax is still material for ordinary companies, but already very low for status companies. |
| From 1 Jan 2020 | Cantonal profit tax for capital companies and cooperatives remains at a flat 6% of net profit. The combined cantonal/communal profit tax burden for juristic persons is approximately 6.1% at the main location (Sarnen), uniform across all municipalities. | Capital tax for all companies set at a uniform 0.001% (0.01‰) of taxable equity, making it the lowest corporate capital tax rate in Switzerland. | Minimum tax: capital companies and cooperatives are subject to a flat minimum tax of CHF 500 if the sum of ordinary profit and capital tax (and any relevant property minimum) falls below this amount. | Implementation of STAF in Obwalden: status regimes are replaced by OECD-compliant instruments such as the patent box and R&D deductions, while capital tax is reduced for all companies to a symbolic level (0.001%), reinforcing Obwalden’s position as a low-tax canton for capital-intensive structures. |
The profit and capital tax parameters shown above are set out in the Obwalden tax act and related guidance for juristic persons. The flat profit tax rate of 6% applies to capital companies and cooperatives, while the capital tax rate of 0.001% on equity applies uniformly across all companies since 1 January 2020. For modelling exercises, always verify the current wording of the tax act and the latest cantonal information sheets.
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in Obwalden results from stacking:
- Obwalden profit tax (cantonal/communal) at an effective rate of around 6.1% of profit before tax for juristic persons, and
- Swiss direct federal corporate income tax at 8.5% on profit after tax (roughly 7.8% on profit before tax once deductibility of the tax itself is taken into account).
External benchmarks and official policy reports place the combined corporate income tax burden in Obwalden (canton + communes + federal) at around:
- Statutory combined rate (before tax deductibility): approx. 14.6% of profit before tax; and
- Effective combined rate (after deductibility of taxes): approx. 12.7% of profit before tax.
The combined rate is uniform across all Obwalden municipalities for juristic persons. This simplifies location analysis within the canton: commune choice is more about operational and substance factors (labour, premises, logistics) than about corporate rate differences.
The very low capital tax (0.001% of equity) is usually immaterial compared with profit tax for profitable companies. It becomes more relevant for capital-rich but low-return structures or in loss-making years, especially when combined with the fixed minimum tax amount.
Illustrative example
Assume a standard capital company in Obwalden with:
- Registered office and effective management in Sarnen;
- Taxable profit before tax: CHF 1,000,000;
- Taxable equity: CHF 5,000,000;
- No special reliefs (no patent box use, no additional R&D deduction); and
- No significant real estate held in the canton (so property-based minimum tax is not binding).
Then, very roughly:
- Cantonal/communal profit tax will amount to around 6.1% of profit before tax (≈ CHF 61,000).
- Federal direct corporate income tax will add around 7.8% of profit before tax (≈ CHF 78,000), after accounting for deductibility of federal tax.
- The total combined burden will be in the range of 12.7% of profit before tax, well within the “low teens” range often used for Swiss head-line comparisons.
- Capital tax at 0.001% of equity corresponds to only CHF 50 at the simple rate (before any tax-sharing considerations), and will normally be far below the profit tax burden.
In a low-profit or loss year (e.g. profit near zero but equity still CHF 5,000,000), the fixed minimum tax of CHF 500 will typically be the binding corporate tax burden unless the property-based minimum tax on real estate is higher.
The values above are indicative and based on recent benchmark data. They do not replace an official calculation or tax ruling. For investment decisions, relocations or group reorganisations, always work with current-year data and, where material, obtain written confirmations from the Obwalden tax administration or through advance tax rulings.
Minimum Tax & Property-Based Minimum
CHF 500 minimum tax for companies
Obwalden applies a fixed minimum tax to capital companies and cooperatives. In simplified terms:
- If the sum of ordinary profit tax and capital tax (and any relevant property-based minimum tax) for a given tax year is below CHF 500, capital companies and cooperatives must instead pay a minimum tax of CHF 500.
- This minimum tax is particularly relevant for low-profit or loss-making companies, and for entities with little equity and minimal activity, as their ordinary tax burden would otherwise be close to zero.
- For profitable operating companies with meaningful profit, ordinary profit tax generally exceeds CHF 500 by a wide margin, so the minimum tax is not binding.
When modelling scenarios, it is therefore important to test the low-profit/loss cases as well as the base case: the minimum tax can influence long-term holding or IP structures with volatile earnings.
Property-based minimum tax on real estate
In addition to the corporate minimum tax, Obwalden levies a separate property-based minimum tax on real estate held by juristic persons:
- For real estate located in Obwalden, companies must pay a property minimum tax of 2‰ (0.2%) of the net tax value or agricultural earnings value if this amount is higher than the ordinary corporate taxes attributable to that property.
- This mechanism acts as a backstop for asset-rich, income-poor structures holding real estate in Obwalden, ensuring a minimum yearly tax contribution.
- The property minimum tax applies alongside the general corporate minimum tax rules: in practice, the higher of the two minimum mechanisms (or the ordinary taxes) will be decisive.
For groups considering Obwalden for real-estate holding entities or property-heavy operating companies, this property-based minimum tax should be integrated into yield and cash-flow models.
Modelling Tools & Calculators
To quantify the tax burden for a specific company in Obwalden, it is best to combine official tools with independent benchmarks and internal models:
| Tool | What it does | How to use it for Obwalden |
|---|---|---|
| Obwalden Gewinn- & Kapitalsteuer calculator | Official calculator that computes cantonal/communal profit tax, capital tax and (where applicable) minimum taxes for juristic persons based on profit, equity and other inputs. | Access the Gewinn- und Kapitalsteuer calculator via the Obwalden tax administration website. Select the tax year, enter taxable profit and equity, and indicate any relevant parameters (e.g. real estate). Use the output to benchmark your own models and to support budgeting and scenario analysis. |
| Swiss federal comparative tax statistics / calculators | Provide comparative views of corporate tax burdens across cantons and across time, often distinguishing between statutory and effective combined rates (including federal tax). | Use these tools to benchmark Obwalden against other low-tax cantons (e.g. Nidwalden, Zug, Schwyz) for new incorporations, head-office functions or holding structures. They are particularly useful when aligning cantonal choices with group-level tax policy or Pillar 2 (global minimum tax) analysis. |
| TaxRep Obwalden calculator (this hub) | Applies Obwalden profit tax, capital tax, minimum tax and property-based minimum parameters, together with federal tax, to your own profit, equity and property values in a way that aligns with the explanations in this guide. | See the calculator page of this hub for a tailored company-level modelling tool once the Obwalden parameters are configured. Use it for quick “what-if” analysis and to support discussions with stakeholders and advisors. |
Planning Considerations
| Theme | Rate impact | What to watch |
|---|---|---|
| Choice of canton & role of Obwalden | Obwalden offers a combined effective corporate tax rate in the low teens (around 12.7% of profit before tax) with an ultra-low capital tax (0.001%). The rate is uniform across all municipalities, which simplifies internal pricing and transfer-pricing models. | Compare Obwalden with alternative low-tax cantons (e.g. Nidwalden, Zug, Schwyz) for head offices, holdings, IP and mobile service entities. Consider not just headline rates but also practical aspects: administrative practice, ruling culture, and availability of talent and infrastructure. |
| Capital intensity & minimum tax exposure | For capital-heavy but low-margin businesses, the CHF 500 minimum tax and the property-based minimum tax may be more relevant than ordinary profit tax in certain years. | Model low-profit and loss scenarios, particularly for start-ups, real-estate structures and holding companies. Assess whether the property-based minimum tax on Obwalden real estate could be material relative to expected operating returns. |
| Use of participation relief & STAF instruments | Participation relief on qualifying dividends and capital gains, combined with the patent box and any Obwalden R&D deductions, can reduce the effective profit tax rate significantly for IP- and R&D-intensive structures. | Confirm participation thresholds, IP nexus and substance requirements. For groups within scope of the OECD/G20 global minimum tax (Pillar 2), test how Obwalden’s rate and relief mix interacts with top-up tax rules and whether additional measures are needed at group level. |
| Real estate in Obwalden | The property-based minimum tax can become the binding burden for entities holding Obwalden real estate, especially if operating results are low relative to property values. | Incorporate the 2‰ property minimum tax into investment and yield calculations for Obwalden properties. Consider whether to separate operating and property-holding functions into distinct entities and how that affects the combined tax profile. |
| Lifecycle events & group restructurings | Mergers, seat relocations, migrations of functions and liquidations can crystallise hidden reserves and affect how profit tax, capital tax and minimum taxes apply in Obwalden. | For significant restructurings involving Obwalden entities, seek advance rulings to secure the treatment of hidden reserves, step-ups, use of loss carryforwards and the interaction with minimum tax mechanisms and Pillar 2 rules. |
FAQs
What is the corporate income tax rate in Obwalden?
Obwalden applies a flat cantonal profit tax rate of 6% of net profit for capital companies and cooperatives. Together with municipal shares, this corresponds to an effective cantonal/communal burden of about 6.1% of profit before tax. On top of this, companies pay Swiss direct federal corporate income tax at 8.5% on profit after tax (about 7.8% on profit before tax). The combined effective rate (including federal tax and taking into account the deductibility of taxes) is therefore in the low teens, around 12.7% of profit before tax for a standard company.
What is the capital tax rate for companies in Obwalden?
Since 1 January 2020, the capital tax for companies in Obwalden has been set at a uniform rate of 0.001% (0.01‰) of taxable equity, making it one of the lowest corporate capital tax rates in Switzerland. For most operating companies, this capital tax is immaterial compared with profit tax, but it is relevant for capital-rich entities with low or volatile profits.
How does the minimum tax for companies work?
Capital companies and cooperatives in Obwalden are subject to a minimum tax of CHF 500 if their combined ordinary profit tax and capital tax (and, where applicable, property-based minimum tax) is below this amount. In such cases, the minimum tax replaces the lower ordinary tax burden. This is particularly relevant for low-profit, loss-making or dormant entities with little taxable income.
What is the property-based minimum tax in Obwalden?
For real estate located in Obwalden, juristic persons must pay a property-based minimum tax of 2‰ of the net tax value (or agricultural earnings value) of the property if this amount is higher than the ordinary taxes attributable to that property. This ensures a minimum annual tax contribution from property-rich structures, even when their ordinary profit and capital taxes are low.
Are the same rates used for all municipalities in Obwalden?
For juristic persons, Obwalden applies a uniform combined cantonal/communal profit tax rate across all municipalities. This means that the combined corporate profit tax rate (canton + communes + federal) is effectively the same in Sarnen and the other Obwalden municipalities. However, the impact of the property-based minimum tax may differ depending on where the real estate is located and how it is valued.
Where can I check the current year’s Obwalden rates and use an official calculator?
The most reliable sources are the Obwalden tax administration’s official documentation for juristic persons and the online calculators for profit and capital tax (including minimum tax mechanisms), together with Swiss federal tax statistics and independent corporate tax comparisons. For material investment or structuring decisions, it is advisable to confirm the applicable rates, reliefs and minimum taxes in writing or via an advance tax ruling.
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