Bern Corporate Income Tax
Last updated: 10 Dec 2025
Bern Corporate Income Tax — Profit Tax Rules
How corporate income tax works in the Canton of Bern: who is subject to profit tax, how the tax base is derived from accounting profit, how cantonal profit tax and municipal multipliers combine with Swiss direct federal corporate income tax to a maximum ordinary burden of around 20.5% on profit before tax in the capital, and how Bern’s 90% patent box, 50% R&D super-deduction and 70% relief cap can reduce the effective rate significantly for innovative companies. This page also covers participation relief, loss carryforwards and permanent establishments.
Scope & Taxpayers
- Resident companies. Companies with statutory seat or effective place of management in Bern are subject to unlimited tax liability on their worldwide income, subject to relief for foreign permanent establishments and immovable property under double tax treaties and intercantonal rules.
- Nonresident entities. Nonresident companies are limited tax liable in Bern if they have local business operations, a permanent establishment, or Bern-situs real estate. Only the profits attributable to the Bern nexus are taxed.
- Juristic persons only. The corporate income tax described here applies to juristische Personen (AG, GmbH, cooperatives, certain foundations and associations). Partnerships and sole proprietors are taxed at shareholder/owner level under personal income tax.
- Tax period. The profit tax period for juristic persons generally follows the financial year. A change of year-end or an extended first business year must be coordinated with the Bern tax administration.
Tax Base: From Accounting Profit to Taxable Profit
Bern corporate income tax is levied on the company’s taxable profit, determined by starting from statutory financial statements (Swiss Code of Obligations and, where applicable, Swiss GAAP FER or IFRS for groups) and then making tax adjustments.
| Step | Description | Typical adjustments |
|---|---|---|
| 1. Accounting profit | Profit after tax per statutory financial statements for the relevant business year. | Profit as approved by the shareholders’ meeting, before appropriation of retained earnings. |
| 2. Add-backs | Non-deductible or partially deductible expenses are added back to profit. | Hidden profit distributions; excessive interest or royalties to related parties; non-business expenses; penalties; profit and capital taxes themselves; certain provisions and value adjustments. |
| 3. Deductions | Items that are tax deductible but not expensed, or expensed differently, are deducted. | Tax-allowed depreciation that exceeds accounting depreciation (within limits); specific provisions; participation relief; Bern patent box reduction and additional R&D deduction where applicable. |
| 4. Allocation & exemptions | Profits allocable to other cantons or foreign permanent establishments are exempt in Bern under intercantonal and treaty rules. | Profit/loss attribution keys; separate determination of foreign PE income; treaty exemptions or credit methods. |
| 5. Taxable profit | Result after adjustments, before loss carryforwards and special reliefs. | Loss carryforwards of up to 7 years can be offset against current-year taxable profit (subject to general Swiss rules). |
The Steuergesetz des Kantons Bern (BSG 661.11), the cantonal tax information service and practice notes provide detailed guidance on depreciation, provisions, hidden equity, participation relief, patent box and the additional R&D deduction. In practice, a clear reconciliation from accounting profit to taxable profit is expected as part of the corporate tax return.
Rates & Effective Burden
Cantonal & communal profit tax
Bern applies a profit tax on net income for juristic persons, consisting of a cantonal simple tax and communal (and, where applicable, church) multipliers.
- The simple cantonal profit tax rate for capital companies and cooperatives is set in the Steuergesetz and is multiplied by the canton’s tax factor and the municipality’s tax factor for juristic persons.
- Municipalities may set their own tax factor for the profit and capital taxes of juristic persons within a band (±20% around the cantonal factor), leading to significant differences between locations.
- In the City of Bern, the maximum ordinary combined profit tax burden (canton, municipality, church, federal) currently sits at about 20.54% on profit before tax, the highest in Switzerland.
At the same time, STAF instruments (90% patent box, 50% additional R&D deduction, 70% relief cap) allow innovative and R&D-intensive companies to reduce their effective burden substantially; in marketing comparisons, a minimum rate of around 12–12.1% is quoted for highly innovative structures.
The exact burden for a given municipality and fact pattern can be obtained via the official Bern tax calculators and the cantonal Belastungsvergleich Gewinnsteuer.
Federal corporate income tax & combined rate
In addition to cantonal/communal profit tax, companies pay Swiss direct federal corporate income tax at a flat rate of 8.5% on profit after tax. Because federal tax is deductible, this corresponds to an effective rate of about 7.8% on profit before tax.
When cantonal, communal, church and federal components are combined, the ordinary corporate income tax burden in Bern for standard capital companies ranges:
- Up to around 20.5% on profit before tax in the City of Bern (maximum burden); and
- Down towards about 12% for strongly R&D- and IP-driven companies making full use of the patent box and the R&D super-deduction within the 70% relief cap.
The Bern tax calculator on this hub is designed to help model combined cantonal, communal and federal profit tax as well as capital tax for a given level of taxable profit.
Participation Relief & STAF Measures
Bern follows federal rules for participation relief and has implemented STAF (Swiss corporate tax reform and AHV financing) with a powerful combination of patent box and R&D super-deduction, subject to a relief cap.
| Mechanism | Overview | Typical planning aspects |
|---|---|---|
| Participation relief | Qualifying dividends and capital gains from shareholdings in subsidiaries benefit from a participation deduction. Net participation income is compared to total profit to compute a deduction that significantly reduces the effective tax burden on qualifying investments. | Minimum shareholding thresholds (e.g. 10% or CHF 1m market value); holding period; treatment of write-downs and liquidation proceeds; interaction with foreign withholding tax and treaty relief; alignment with dividend policy at shareholder level (partial taxation of qualifying dividends). |
| Patent box (90% relief) | The Bern patent box allows an effective 90% reduction on net income from qualifying patents and comparable rights at cantonal and communal level. Only 10% of qualifying patent income enters the Bern tax base, subject to the OECD nexus approach and strict documentation requirements. | Identifying qualifying patents and comparable rights; tracking qualifying vs. non-qualifying R&D; nexus documentation; allocation methodology for box income; box entry rules and potential step-up on past R&D. |
| R&D super-deduction (50%) | On top of ordinary deductibility of R&D costs, Bern grants an additional deduction of up to 50% of qualifying R&D expenditure, based largely on Swiss personnel costs plus a lump-sum mark-up for infrastructure and third-party R&D. | Defining qualifying R&D and separating it from routine activities; documenting Switzerland-based R&D personnel; determining the eligible base for the 50% uplift; coordinating the R&D deduction with the patent box to avoid double counting. |
| Relief cap (70%) | Under Bern’s relief cap (Art. 90a StG), the combined effect of patent box and R&D super-deduction may not reduce the taxable profit (before loss set-off and excluding participation income) by more than 70%. At least 30% of the relevant profit must remain fully taxable. | Modelling combined effects of participation income, patent box and R&D; managing the order of deductions; balancing the use of patent box vs. R&D deduction; aligning with global minimum tax considerations for large groups. |
In public comparisons, Bern appears as a high-tax canton based on the maximum ordinary rate. However, for R&D-intensive companies that can fully use the 90% patent box and 50% R&D super-deduction within the 70% relief cap, the effective corporate income tax burden can drop to approximately 12% on profit before tax.
Losses, Groups & Permanent Establishments
- Loss carryforwards. Tax losses can generally be carried forward for up to 7 years and offset against future taxable profits in Bern, within the standard Swiss framework. There is no loss carryback.
- Group situation. Switzerland has no full fiscal unity or tax consolidation regime for ordinary corporate income tax. Each Bern legal entity files its own return; group effects are managed through financing, transfer pricing, participation relief and, where relevant, group VAT registration.
- Intercantonal allocation. Where a company has operations, real estate or permanent establishments in several cantons, profit and capital are allocated using generally accepted keys (e.g. payroll, assets, turnover) based on practice and jurisprudence. Bern applies these nationwide principles consistently.
- Foreign permanent establishments. Under many treaties, profits attributable to foreign permanent establishments are exempt in Switzerland with progression. Accurate attribution of profits and capital, and consistent transfer pricing, are essential to support the exemption for Bern and federal tax.
- Restructurings & step-up. Mergers, de-mergers, contributions in kind and migrations of seat can be tax neutral if Swiss conditions are met (continuity of business, carryover of hidden reserves, adequate consideration, etc.). Bern provides for special step-up rules on hidden reserves and self-created goodwill when entering ordinary taxation; such cases are commonly handled via advance tax rulings.
- OECD minimum tax. Large multinational groups may be subject to a 15% minimum tax and related top-up mechanisms. For in-scope groups with significant patent box income, Bern’s combination of ordinary rate and STAF instruments interacts with Swiss minimum-tax rules; proactive modelling and rulings are standard for major structures.
Interaction with Capital Tax
Profit tax and capital tax are closely linked in Bern. Profit tax is levied annually on taxable income, while capital tax is levied on the company’s equity. Both taxes are assessed based on the same corporate return for juristic persons.
- For capital companies and cooperatives, the simple capital tax rate is currently 0.05‰ of taxable equity. Municipalities apply their own tax factors (with limited variation), so effective capital tax is the simple tax multiplied by the cantonal and municipal factors.
- The Steuergesetz provides that profit tax is credited against capital tax, so in profitable years capital tax often functions more as a minimum tax. In low-profit or loss years, capital tax can be the main burden.
- For associations, foundations and other juristic persons, the same simple capital tax rate applies; thresholds and exemptions may differ, particularly for small equity amounts.
- Some relief on capital tax is available via reductions in the taxable equity for certain qualifying participations, patents and similar rights, reflecting the treatment of these items under STAF.
- The level and stability of equity influence the company’s overall tax burden: higher equity increases capital tax but reduces thin-capitalisation risk and the likelihood of interest being recharacterised for profit tax purposes.
- For details on rates and base, see the Bern capital tax page and the combined tax calculator.
Compliance Snapshot
This guide focuses on the substantive rules for corporate income tax in Bern. For procedural aspects — who files, which forms to use and which deadlines apply — see the dedicated Forms & deadlines page.
| Area | Key points |
|---|---|
| Filing | Annual corporate tax return for juristic persons, using the Bern forms and electronic tools for capital companies and cooperatives (covering cantonal/communal and direct federal tax on profit and capital). Electronic filing is supported via the Bern tax portal. |
| Deadline | Filing deadlines are generally set seven months after the end of the financial year. Standard extensions can usually be obtained upon request; longer extensions may require specific justification or professional representation. |
| Documentation | Signed financial statements; profit-to-tax reconciliation; schedules for participation relief, patent box and R&D deduction; capital tax computation; transfer pricing documentation where relevant; copies of rulings and related correspondence. |
| Assessments & objections | Combined assessments for cantonal, communal and federal tax. Objection rights and deadlines are set out in the assessment notice. In complex or cross-cantonal situations, it is common to clarify key issues via rulings or pre-filing discussions rather than relying solely on ex-post objections. |
FAQs
How high is the corporate income tax rate in Bern?
In the City of Bern, the maximum ordinary corporate income tax burden (canton, municipality, church and federal) is currently around 20.54% on profit before tax, the highest in Switzerland. For other municipalities in the canton, the burden is somewhat lower. For innovative, R&D-intensive companies that can fully use the 90% patent box and 50% R&D super-deduction within the 70% relief cap, effective rates of around 12–12.1% are quoted in practice.
What is the difference between profit tax and capital tax in Bern?
Profit tax is charged on the company’s taxable income for the year, while capital tax is charged on the company’s equity (share capital, reserves and hidden equity) at the balance sheet date. In Bern, the simple capital tax rate is 0.05‰ of taxable equity, multiplied by the cantonal and municipal tax factors. Profit tax is credited against capital tax, so in profitable years capital tax often acts as a minimum tax. Both taxes are assessed together but operate on different tax bases and tariff structures.
Are dividends from subsidiaries fully taxed in Bern?
No. Qualifying participations benefit from participation relief at corporate level. Net participation income (dividends and certain capital gains) leads to a participation deduction that significantly reduces the effective tax burden. At shareholder level, Bern applies partial taxation for dividends from substantial shareholdings, mitigating economic double taxation.
How are losses treated for Bern corporate income tax?
Tax losses can generally be carried forward for up to seven years and offset against future taxable profits. There is no loss carryback. In restructurings or material changes of ownership, special rules may limit the use of losses; advance tax rulings are often used where significant loss carryforwards or changes in the functional profile are involved.
Does Bern offer patent box and R&D special deductions?
Yes. As part of STAF, Bern offers a patent box with a 90% reduction for qualifying patent income and an additional deduction of up to 50% on qualifying research and development expenditure. Together, these instruments are subject to a 70% overall relief cap, meaning that at least 30% of the relevant profit must remain fully taxable.
Can I get a ruling on a planned structure or transaction in Bern?
Yes. Bern offers advance tax rulings for corporate structures, financing arrangements, intellectual property and patent box planning, reorganisations, step-up of hidden reserves and the treatment of losses. A well-prepared ruling request can provide certainty on the corporate income tax treatment and its interaction with capital tax and direct federal tax.
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