Bern Capital Tax
Last updated: 14 Dec 2025
Bern Capital Tax — Equity Tax Rules
How capital tax works for companies in the Canton of Bern: who is subject to equity tax, how the taxable capital base is determined, how the cantonal rate and profit-tax credit operate, which reliefs exist for holding, IP and participation-heavy companies, and how capital tax interacts with corporate income tax.
Scope & Taxpayers
- Resident companies. Capital tax applies to companies with statutory seat or effective place of management in Bern (AG, GmbH, cooperatives and other juristische Personen), on their equity allocable to the canton.
- Nonresident entities. Nonresident companies with a permanent establishment or Bern–situs real estate are subject to capital tax on the equity attributable to those Bern assets and operations.
- Tax period and valuation date. Capital tax is assessed annually, usually based on equity at the end of the business year, as defined in the Bern tax act and practice. Book values are the starting point, but hidden equity may be added or adjustments made where accounts do not reflect tax values.
- Legal form. The rules on this page focus on capital companies and cooperatives. Associations, foundations and entities with ideal or charitable purpose may benefit from exemptions, thresholds or separate capital tax rules.
Tax Base: Equity & Hidden Equity
For Bern capital tax, the taxable base is equity as defined in the cantonal tax act (share capital and reserves, open and hidden), subject to specific adjustments and reliefs.
| Component | Included? | Comment |
|---|---|---|
| Share/paid-in capital | Yes | Fully included in the capital tax base for AGs and GmbHs, based on the registered commercial register amount. |
| Open reserves | Yes | Legal reserves, voluntary reserves and retained earnings form part of taxable equity. |
| Hidden reserves (including goodwill) | Yes, in principle | To the extent that assets are carried below tax values or significant hidden reserves exist, Bern practice can require adjustment, particularly in restructurings, migrations or transactions with related parties. |
| Revaluation reserves | Yes | Revaluation reserves and step-up amounts become part of equity and hence the capital tax base once recorded. |
| Non-business assets | Yes | Private or non-business assets held within the company are fully subject to capital tax and may impact profit tax as well (e.g. deemed income). |
| Hybrid instruments & shareholder loans | Partially | Excessive shareholder loans may be recharacterised as hidden equity under thin-capitalisation rules, increasing the capital tax base. |
| Participations, IP & intra-group loans | Yes, but often relieved | Equity attributable to qualifying participations, patents and comparable rights or certain intra-group loans can benefit from capital tax relief under Bern’s STAF-related measures, significantly reducing the effective capital tax on holding and IP-rich structures. |
The precise capital tax base is determined under the Bern tax act (Steuergesetz des Kantons Bern) and cantonal practice. For groups, allocation of equity between Bern and other cantons or foreign jurisdictions is a critical step and should follow consistent allocation keys aligned with the group’s profit allocation.
Rates, Credits & Special Statuses
Standard rate & profit-tax credit
For ordinary capital companies and cooperatives, Bern applies a simple capital tax rate of 0.05 ‰ (per-mille) to the taxable equity at cantonal level. This simple rate is then multiplied by the applicable cantonal and communal tax multipliers (Steueranlagen) to arrive at the effective cantonal/communal capital tax.
A central feature of Bern is that profit tax is credited against capital tax. In profitable years, corporate income tax can therefore reduce or fully absorb the capital tax burden. In low-profit or loss years, capital tax can function as a de facto minimum tax, ensuring a baseline contribution even where profit tax is low.
For associations, foundations and other entities, capital tax only applies once equity exceeds certain thresholds, effectively creating a de minimis rule for smaller non-profit structures.
The effective burden can vary over time as tax multipliers are adjusted. For current figures by tax year, see:
- The official Bern pages on calculating tax for juristic persons , and
- the Rates page of this hub.
Holding, IP & special-status companies
Bern combines the proportional capital tax rate with base relief for specific equity components and with the profit-tax credit. Key situations include:
- Holding companies. Companies that primarily hold participations can benefit from extensive capital tax relief on equity attributable to qualifying shareholdings. Combined with participation relief on profit tax, this can lead to a materially reduced overall burden on holding structures.
- IP and financing structures. Where equity is linked to qualifying IP or intra-group financing activities, Bern’s STAF implementation allows capital tax relief on these components, particularly where the canton’s patent box and R&D measures are used in tandem.
- Real estate and asset-heavy companies. For companies with significant Bern real estate or other capital-intensive assets, capital tax can be a meaningful recurring cost. The interplay with profit tax credits and possible restructuring (e.g. separate property companies) is often central to planning.
The detailed conditions, relief percentages and any transitional rules are set out in the Bern tax act, ordinances and cantonal guidance and are typically confirmed in advance tax rulings for larger structures.
Interaction with Profit Tax
Capital tax in Bern is closely coordinated with corporate income tax. A few key points:
- Same return, separate bases. Profit tax is levied on taxable income; capital tax is levied on equity. Both are calculated using the same corporate tax return for juristic persons, but with different schedules.
- Progressive profit tax, proportional capital tax. Bern uses a progressive cantonal profit tax tariff for capital companies, but a proportional, per-mille capital tax on equity. Both are multiplied by cantonal and communal tax multipliers.
- Profit-tax credit against capital tax. A portion of the cantonal profit tax is credited against the capital tax, so that the combined burden reflects both the company’s profitability and its level of equity. In strong profit years, this credit can almost eliminate standalone capital tax.
- Minimum function in weak years. In low-profit or loss years, the profit-tax credit is small or nil, so capital tax becomes the main cantonal burden and functions as a minimum tax on equity.
- STAF interaction. Capital tax base relief for participations, IP and intra-group loans, together with the profit-tax credit, can significantly alter where the marginal burden lies for holding and IP-rich structures. Scenario modelling is therefore important for location and financing decisions.
For the profit tax side, see the Bern corporate tax page and the combined tax calculator.
Planning Points & Typical Cases
| Theme | Capital tax angle | Typical actions |
|---|---|---|
| Financing structure | More equity means higher capital tax but less thin-cap risk, while high shareholder debt can be challenged and reclassified as hidden equity in Bern. | Review intra-group financing; align with Swiss thin-capitalisation practice; document arm’s-length interest rates and security; model combined profit and capital tax under different equity levels. |
| Holding structures | Qualifying holding companies may enjoy extensive relief on equity tied to participations and participation-exempt income, making Bern a potential location for group holdings despite moderate profit tax levels. | Assess whether Bern holding criteria are met; compare Bern with alternative cantons; obtain rulings to secure capital tax relief and confirm interaction with participation relief. |
| IP & R&D | IP-rich companies may face higher equity and hence capital tax, but can use STAF instruments (patent box, R&D super-deduction, capital tax relief on IP-related equity) to rebalance the overall burden. | Map IP assets and functions; ensure robust valuation and cost tracking; coordinate profit and capital tax optimisation; align with substance requirements in Bern. |
| Real estate & non-core assets | Real estate and non-core assets often carry significant equity and hidden reserves, increasing capital tax and affecting allocation between Bern and other cantons. | Consider spin-offs into separate property companies; align asset location with business strategy and tax burden; review allocation keys for multi-cantonal or cross-border groups. |
| Restructurings & migrations | Changes of seat, mergers or de-mergers may crystallise hidden reserves or trigger special capital tax rules and adjustments in equity allocation into or out of Bern. | Plan transactions early; prepare pro-forma balance sheets and allocation scenarios; seek rulings from Bern and federal tax authorities on key steps. |
Compliance Snapshot
Capital tax is assessed and collected together with corporate income tax for juristic persons. For procedural detail, see the dedicated Forms & deadlines page. Key points include:
| Area | Key points |
|---|---|
| Return | Annual corporate tax return for juristic persons, filed via the Bern tax administration’s electronic systems or approved software, includes both profit and capital tax sections and the profit-tax credit mechanism. |
| Deadline | Same filing deadline as for profit tax (standard deadlines are set canton-wide and can be extended on request). The equity position at year-end and any capital tax base relief must be documented for the same period. |
| Documentation | Balance sheet; equity reconciliation; details of participations, IP, intra-group loans and major revaluations; analysis of hidden equity and shareholder loans where relevant; evidence for applying capital tax reliefs. |
| Assessments & objections | A single assessment covers profit and capital tax. Objections must clearly distinguish issues relating to the profit tax base, the capital tax base, the amount of any profit-tax credit and the allocation of equity to Bern. |
FAQs
What is taxed under Bern capital tax?
Bern capital tax is levied on the company’s equity attributable to the canton: share capital, open reserves, retained earnings and, where relevant, hidden equity and revaluation reserves. Certain assets such as participations, IP and intra-group loans can benefit from capital tax relief, but they generally form part of the starting equity base before relief is applied.
How is the capital tax rate determined in Bern?
The canton defines a simple capital tax rate of 0.05 ‰ of equity for capital companies and cooperatives. This simple rate is then multiplied by the cantonal and communal tax multipliers (Steueranlagen). The effective burden therefore depends both on the statutory per-mille rate and on the current multipliers for the company’s municipality.
Is there a minimum capital tax in Bern?
Bern does not levy a separate flat minimum capital tax for ordinary companies. Instead, capital tax is proportional to equity, and profit tax is credited against capital tax. In practice, this credit mechanism means that capital tax can act as a minimum burden in low-profit or loss years, while being partially or fully offset in highly profitable years.
Do holding companies pay capital tax in Bern?
Holding companies are generally subject to capital tax in Bern, but equity linked to qualifying participations can benefit from extensive capital tax relief. Combined with participation relief on profit tax and the profit-tax credit against capital tax, this can significantly reduce the effective burden on holding structures.
Can Bern capital tax be reduced through planning?
Within legal limits, yes. Typical levers include optimising equity vs. debt, managing the location and structure of holdings and IP, using STAF reliefs for participations and IP, and ensuring that profit and capital tax are coordinated via the credit mechanism. Any planning must be consistent with substance, transfer pricing and Swiss anti-avoidance practice.
Get Bern capital & corporate tax help (Sesch TaxRep GmbH) Bern cantonal tax service