Zug Corporate & Capital Tax
Last updated: 11 Dec 2025
Zug Corporate & Capital Tax — Business Tax Overview
How corporate income tax and capital tax work in the Canton of Zug for companies: who is taxed, what is taxed, how rates are built up, where Zug sits in the Swiss landscape, and where to dive deeper (profit tax, capital tax, rates, cases, calculator, and forms & deadlines).
Zug at a Glance
Position in the Swiss tax landscape
Zug is a central Swiss canton and one of Switzerland’s best-known low-tax corporate hubs:
- Corporate income tax rates (cantonal/communal plus federal) are generally in the lower to mid-teens for standard companies, depending on commune, year and use of reliefs.
- Capital tax on equity exists but can often be kept modest, especially for holding, financing and IP-rich structures using STAF instruments and cantonal reliefs.
- Zug hosts international groups, trading and commodity houses, finance and crypto / tech businesses, alongside local SMEs, with a very developed ruling and practice environment.
Key features for companies
| Tax types | Cantonal/communal profit tax, cantonal/communal capital tax, federal corporate income tax. |
| Taxpayers | Capital companies (AG, GmbH), cooperatives, certain foundations and associations. |
| Profit tax base | Taxable profit derived from statutory accounts with tax adjustments. |
| Capital tax base | Equity (including reserves and hidden equity), with reliefs for certain assets. |
| STAF tools | Participation relief, patent box, R&D deductions and related measures. |
Who Is Taxed & On What?
- Aziende residenti. Companies with their statutory seat or effective place of management in Zug are subject to responsabilità fiscale illimitata on their worldwide income and equity, with exemptions or credits for foreign permanent establishments and real estate under Swiss and treaty rules.
-
Entità non residenti.
Nonresident companies are subject to responsabilità fiscale limitata in Zug on profit and
equity attributable to:
- Permanent establishments in Zug; and/or
- Zug–situs real estate or business assets.
- Legal forms in scope. The rules in this hub primarily address persone giuriste (AG, GmbH, cooperatives). Partnerships and sole proprietors are taxed via personal income tax and are not the focus here.
- Periodo fiscale. For juristic persons, the tax period generally follows the financial year. Year-end changes or extended first years require coordination with the tax office.
Corporate Income Tax vs. Capital Tax
Zug, like other Swiss cantons, taxes companies entrambi on their annual profit and on their equity. Understanding the distinction is key for planning.
| Aspetto | Corporate income tax (profit tax) | Capital tax (equity tax) |
|---|---|---|
| Base imponibile | Taxable profit for the year (after adjustments and loss offsets). | Equity attributable to Zug (share capital, reserves, hidden equity). |
| Economic focus | How much the company earns. | How strongly the company is capitalised and where assets reside. |
| Driver principali | Business model, margins, transfer pricing, reliefs. | Financing mix (equity vs debt), participations, IP, real estate and treasury functions. |
| Interaction | Profit tax may be credited or coordinated with capital tax in special cases. | Often functions as a minimum tax in low-profit or loss years. |
| Where to read more | Zug corporate tax | Zug capital tax |
For many Zug companies, the combined profit and capital tax burden is dominated by profit tax. But for holding structures, treasury and IP-rich entities, capital tax can be a meaningful additional cost or a binding minimum, and should be modelled explicitly.
Indicative Rate Level & Competitiveness
Where do Zug rates sit?
While exact figures depend on tax year, commune, and use of reliefs, Zug is typically viewed as:
- One of the most attractive cantons in Switzerland from a corporate tax perspective;
- Highly competitive for holding, trading, finance, commodity and service companies with real substance;
- A leading location for international group headquarters, IP and financing entities, supported by modern STAF instruments and a sophisticated ruling practice.
For statutory parameters and trends over time, see the Tariffe page, which summarises simple rates, tax factors and minimum tax rules.
Quick modelling
To get a first feel for the combined tax burden (cantonal, communal and federal) on your company’s profit and equity:
- Use this hub’s Zug tax calculator for an approximate estimate; and
- Cross-check with the official cantonal company tax calculator.
For restructuring, relocations or major investments, these tools are a starting point. A tailored model and, where appropriate, an advance tax ruling are usually the next step.
STAF, IP & Special Situations
Zug has implemented the Swiss corporate tax reform (STAF) and provides a toolbox of reliefs and instruments that can materially change the effective tax rate for qualifying companies.
| Strumento | Cosa fa | Where to look |
|---|---|---|
| Sgravio di partecipazione | Reduces the effective tax burden on qualifying dividends and capital gains from shareholdings in subsidiaries. | Explained in depth on the imposta sulle società page (participation income section). |
| Patent box | Allows qualifying IP income to be taxed at a reduced level, subject to nexus and tracking requirements. | Particularly relevant for IP companies and R&D structures described in the casi section. |
| R&D deductions | Provide additional deductions for qualifying R&D expenses, lowering the profit tax base. | Discussed in both the imposta sulle società e casi pagine. |
| Capital tax relief | Certain assets (e.g. participations, IP) may benefit from reduced capital tax exposure, especially in holding or IP-heavy structures. | Vedi imposta sul capitale and the planning aspects on the tariffe pagina. |
These instruments are powerful but documentation-heavy. For material structures, Zug practice typically involves an advance ruling that coordinates cantonal and federal tax treatment.
Compliance Workflow in Practice
For a typical Zug company (AG o GmbH), the recurring tax workflow looks roughly like this:
| Passo | What happens | Where to read more |
|---|---|---|
| 1. Year-end closing | Financial statements are prepared and approved; key tax-sensitive items (provisions, depreciation, related-party transactions) are identified. | Internal accounting, auditors, group tax. |
| 2. Tax return preparation | Zug corporate tax return (juristic persons) is prepared (often via e-filing tools), including profit-to-tax reconciliation and capital tax base. | Moduli e scadenze |
| 3. Filing & payment | The return and financials are signed and filed; advance payments are reconciled; any remaining tax is paid within deadlines. | Moduli e scadenze |
| 4. Assessment & follow-up | Combined cantonal/communal and federal assessments are issued. If needed, objections are filed within the stated period. | Corporate & capital tax interactions: imposta sulle società, imposta sul capitale. |
| 5. Planning & rulings | For restructurings, IP or financing changes, models are updated and rulings are prepared with the Zug and federal authorities. | Casi & Zug Tax Service |
Domande frequenti
Is Zug a high- or low-tax canton for companies?
Zug is widely regarded as a Cantone a bassa tassazione for companies in Switzerland. It is frequently on shortlists in international corporate location comparisons, particularly for holdings, trading, finance and tech companies with substance.
Do I always pay both profit tax and capital tax in Zug?
Yes, for companies in scope, both are levied each year, but the relative weight varies. In profitable years, profit tax dominates; in low-profit or loss years, capital tax or a minimum tax may be the binding element. Special regimes and STAF instruments can change the mix for holdings and IP structures.
How important are advance tax rulings in Zug?
For routine annual filings, rulings are not usually needed. For structuring questions (holdings, IP, financing, relocations, major restructurings), rulings are very common and provide valuable certainty, especially when multiple cantons or countries are involved.
Can I manage Zug corporate tax from abroad?
Many groups manage Swiss corporate tax centrally and work with local advisors for Zug compliance and rulings. Returns can often be prepared electronically and filed by post; communication with the tax office is possible via representatives. Substance, governance and documentation remain key, particularly for IP, treasury and financing structures.
Where do I start if I am considering a move to Zug?
A typical sequence is: (1) high-level rate comparison and effective tax modelling; (2) review of substance, functions and people; (3) structuring concept (legal form, holding / IP / finance set-up); and (4) pre-filing discussions and rulings with the Zug tax authorities. The Zug Tax Service is designed to support exactly this path.
Discuss your Zug corporate tax position (Sesch TaxRep GmbH) Contatto