Glarus Corporate & Capital Tax Rates
Last updated: 09 Dec 2025
Glarus Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of Glarus: reduced simple cantonal profit tax for companies, capital tax at 2‰ on equity (with a lower rate for holding & administration companies), no general minimum tax, approximate effective combined burdens (including federal tax), and tools to model the tax load for companies in Glarus.
Overview
Companies in Glarus pay a combination of:
- Cantonal/communal profit tax on taxable profit;
- Cantonal/communal capital tax on equity; and
- Direct federal corporate income tax on profit.
For capital companies and cooperatives (Kapitalgesellschaften und Genossenschaften), Glarus applies a simple profit tax rate at the cantonal level, which is multiplied by a tax factor (Steuerfuss) fixed annually by the Landsgemeinde and the communes. The tax factor is unified across the canton, so companies essentially face a canton-wide profit tax environment.
Capital tax is levied as a percentage (per-mille) of taxable equity. Ordinary companies pay a standard capital tax rate, while holding and administration companies benefit from a much lower rate with a modest minimum amount.
Historically, Glarus made use of preferential regimes for holding and domiciliary companies; these have been reshaped in the context of the Swiss corporate tax reform (STAF), with more emphasis on participation relief and patent box instruments and a generally lower headline profit tax rate.
Statutory Cantonal & Capital Rates (Capital Companies & Cooperatives)
The following table summarises the key Glarus profit and capital tax parameters for capital companies and cooperatives in recent years. It distinguishes between ordinary companies and holding / administration companies as defined in the Glarus tax act.
| From / to | Profit tax (Kapitalgesellschaften & Genossenschaften) | Capital tax on equity (Kapitalsteuer) | Minimum amounts | Comment |
|---|---|---|---|---|
| Until 31 Dec 2019 | Simple cantonal profit tax of 8.0% of taxable profit for capital companies and cooperatives. Combined with the applicable tax factors (Kanton, Gemeinden, Kirchen) this resulted in a statutory combined profit tax rate in the high teens and an effective combined rate (incl. federal) in the mid-teens for ordinary companies in the capital Glarus. |
Capital tax of 2.0‰ (0.2%) of taxable equity for ordinary companies; 0.05‰ (0.005%) for holding and administration companies, in each case as the simple cantonal rate before tax factors. |
Holding and administration companies: capital tax of 0.05‰ of taxable equity, minimum CHF 500 per year. | Pre-STAF regime with higher profit tax but already low capital tax for status companies. Many holding and administration companies paid little or no cantonal/communal profit tax, combined with participation relief and federal rules. |
| From 1 Jan 2020 | Simple cantonal profit tax of 4.5% of taxable profit for capital companies and cooperatives (reduction from 8.0%). This simple rate is multiplied by the canton-wide tax factor to obtain the cantonal/communal profit tax amount. |
Capital tax for ordinary companies remains at 2.0‰ (0.2%) of taxable equity. Holding and administration companies continue to benefit from a capital tax of 0.05‰ of taxable equity (simple rate). |
Holding and administration companies: capital tax of 0.05‰ of taxable equity, with a minimum of
CHF 500 per year. No separate general minimum tax for ordinary companies beyond this mechanism. |
Implementation of STAF in Glarus: the simple profit tax for ordinary companies is significantly reduced, bringing the effective combined rate (incl. federal) down to the low-teens. The capital tax structure and the minimum capital tax for status companies remain unchanged, but status regimes are aligned with federal requirements. |
The simple profit and capital tax rates shown above are those laid down in the Glarus tax act for capital companies and cooperatives. The actual cantonal/communal burden depends on the annually fixed tax factors. For planning and modelling, it is best to start from the effective combined rate for the relevant year and municipality, and then back-solve the cantonal share using the official calculator.
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in Glarus is the result of stacking:
- Glarus profit tax (cantonal/communal) based on the simple rate of 4.5% and the applicable tax factors; and
- Swiss direct federal corporate income tax at 8.5% on profit after tax (approximately 7.8% on profit before tax).
Recent benchmark studies and official projections indicate that, after the STAF-related rate reduction, the combined corporate income tax burden (canton + communes + federal) in the capital Glarus is approximately:
- Statutory combined rate: around 14.0% of profit before tax; and
- Effective combined rate (after tax deductibility): around 12.3% of profit before tax.
In many corporate tax rankings, Glarus appears in the group of low-tax cantons with combined effective rates in the low-teens, slightly above Central Swiss leaders such as Zug, Nidwalden and Lucerne but still highly competitive in a Swiss and international comparison.
Within the canton, differences between municipalities (e.g. Glarus Stadt vs. Glarus Süd) exist but are modest for standard companies. As a rule of thumb, an effective combined rate in the 12–13% range can be assumed for ordinary capital companies in Glarus for recent tax years.
Illustrative example
Assume a standard capital company in the town of Glarus with:
- Taxable profit before tax: CHF 1,000,000;
- Taxable equity: CHF 3,000,000;
- No special STAF instruments (no patent box, no R&D super-deduction);
- No special ruling and no significant foreign permanent establishments.
Then, very roughly:
- Cantonal/communal profit tax will account for a bit less than half of the combined burden (because of the reduced simple rate of 4.5% and the tax factor).
- Direct federal corporate income tax will account for the remaining portion, such that the combined effective rate is in the range of 12–13% of profit before tax.
- Capital tax at 2‰ on CHF 3,000,000 of equity corresponds to a simple cantonal capital tax of CHF 6,000 before tax factors. In profitable years this is modest relative to profit tax, but it still needs to be budgeted for capital-intensive structures.
- Since Glarus does not apply a general minimum tax for ordinary companies, there is no additional flat amount on top of the calculated profit and capital taxes.
For precise rates and amounts for a given tax year and municipality, use the official Glarus Gewinn- & Kapitalsteuer calculator for juristic persons together with your own internal models.
The figures above are indicative only and based on current statutory parameters and external benchmarks. They cannot replace an official tax assessment or ruling. For material investment or structuring decisions, always work with current-year data and consider obtaining advance rulings from the Glarus tax administration.
Minimum Tax & Special Statuses
No general minimum tax for ordinary companies
Unlike some other cantons, Glarus does not apply a general flat minimum tax for capital companies and cooperatives beyond capital tax itself:
- Ordinary capital companies and cooperatives are taxed according to their actual profit and equity; if both are low, the total tax burden can also be low.
- The capital tax at 2‰ of equity effectively acts as a recurring minimum burden for capital-intensive but low-profit entities, even in loss-making years.
- There is no separate fixed amount (such as CHF 500 or CHF 1,000 per year) that applies across all ordinary companies regardless of profit and equity.
For business plans with volatile profits or longer loss phases, it is therefore essential to check how the capital tax interacts with the absence of a general minimum tax in Glarus.
Holding & administration companies
Glarus maintains specific rules for holding and administration companies, which are particularly relevant for groups with substantial participation or financing structures:
- Capital tax for holding and administration companies is levied at a reduced rate of 0.05‰ of taxable equity (simple rate), subject to a minimum of CHF 500 per year.
- Historically, such status companies were also subject to very favourable profit tax treatment. Under STAF, these rules have been aligned with international requirements and combined with participation relief and, where applicable, patent-box-type instruments.
- For pure holding or administration structures, the effective profit tax on qualifying participation income can be very low, with capital tax and any minimum amounts becoming the main recurring burden at cantonal level.
For significant holding or administration structures in Glarus, advance tax rulings are common in order to clarify the application of participation relief, the classification as holding / administration company and the interaction with foreign tax rules.
Modelling Tools & Calculators
To quantify the tax burden for a specific company in Glarus, it is best to combine official tools with internal models and cross-cantonal benchmarks:
| Tool | What it does | How to use it for Glarus |
|---|---|---|
| Glarus Gewinn & Kapitalsteuer calculator | Official online calculator for juristic persons that computes cantonal/communal profit tax, capital tax and (where relevant) church tax for companies based on profit and equity. | Use the Steuerkalkulator via the Glarus tax administration website and select the calculator for juristische Personen. Enter taxable profit, equity, legal form and municipality. Use the output to benchmark your internal models and to support budgeting and pricing. |
| Swiss federal comparative tax statistics / calculators | Provide comparative views of corporate tax burdens across cantons, often reporting statutory and effective combined rates (including federal tax) for the cantonal capitals. | Use these tools to position Glarus (combined effective rate around the low-teens) against other low-tax cantons such as Zug, Nidwalden and Lucerne, as well as mid- and high-tax cantons like Zurich or Bern. This is particularly relevant when aligning canton choice with group-wide tax and Pillar 2 strategies. |
| TaxRep Glarus calculator (this hub) | Applies Glarus profit and capital tax parameters, together with federal tax and status-specific rules, to your own profit and equity figures in a way that is consistent with the explanations on this page. | See the calculator page of this hub once the Glarus parameters are configured. Use it for quick “what-if” scenarios (e.g. different equity levels, profit assumptions, use of participation relief) and to support internal decision-making and client discussions. |
Planning Considerations
| Theme | Rate impact | What to watch |
|---|---|---|
| Choice of canton & role of Glarus | After the reduction of the simple profit tax to 4.5%, Glarus offers a combined effective corporate income tax rate in the low-teens (around 12–13% of profit before tax). Capital tax at 2‰ is somewhat higher than in certain Central Swiss cantons but still moderate. | Compare Glarus with nearby cantons like Zurich, St. Gallen and the Central Swiss low-tax cantons when choosing locations for operational entities, holdings and IP companies. Consider not only headline rates but also substance requirements, ruling practice, and labour-market factors. |
| Capital intensity & capital tax | For capital-intensive but low-margin businesses, the capital tax at 2‰ of equity can become a non-negligible recurring burden, especially in loss-making years with low profit tax. | Model scenarios with different equity levels and profit volatility. Consider whether alternative capital structures, intra-group financing or the use of lower-capital entities can optimise the overall tax profile without jeopardising thin-capitalisation rules or commercial objectives. |
| Holding & administration companies | Holding and administration companies benefit from a very low capital tax rate (0.05‰) but are subject to a minimum of CHF 500 per year. Profit tax is often light due to participation relief and the overall STAF-aligned regime. | For material holding structures, confirm classification as holding / administration company and the interaction with foreign CFC rules and withholding taxes. Test the impact of the minimum capital tax and the very low profit tax burden on Pillar 2 top-up tax computations at group level. |
| Use of participation relief & STAF instruments | Participation relief on qualifying shareholdings and any patent-box-type reliefs can materially reduce the effective profit tax rate on certain income streams. | Check local implementation details (thresholds, relief caps, nexus requirements) and document the allocation of R&D and IP functions. For groups within scope of global minimum tax rules, coordinate the use of reliefs with Pillar 2 modelling. |
| Lifecycle events & restructurings | Mergers, migrations of seat or operations, and liquidations can crystallise hidden reserves and affect the timing of profit and capital taxes in Glarus. | For significant restructurings, obtain rulings on the treatment of hidden reserves, step-ups, participation gains and loss utilisation. Consider how Glarus interacts with other cantons in split-period or inter-cantonal cases. |
FAQs
What is the corporate income tax rate in Glarus?
Glarus applies a simple cantonal profit tax rate of 4.5% of taxable profit for capital companies and cooperatives. After multiplication by the canton-wide tax factors and adding Swiss direct federal corporate income tax (8.5% on profit after tax, about 7.8% before tax), the combined effective rate for ordinary companies in the capital Glarus is around 12–13% of profit before tax, based on recent benchmark studies.
What is the capital tax rate for companies in Glarus?
For ordinarily taxed capital companies and cooperatives, Glarus levies a capital tax of 2.0‰ (0.2%) of taxable equity. For holding and administration companies, the capital tax is reduced to 0.05‰ of taxable equity, subject to a minimum of CHF 500 per year. In profitable years, capital tax is usually modest compared with profit tax, but it is important for capital-intensive or low-margin structures.
Does Glarus have a minimum tax for companies?
Glarus does not apply a general flat minimum tax for all capital companies and cooperatives. Ordinary companies are taxed according to their actual profit and equity. However, holding and administration companies are subject to a minimum capital tax of CHF 500 per year, and the 2‰ capital tax on equity can act as a de facto minimum burden for capital-intensive entities in low-profit or loss years.
How are holding and administration companies treated in Glarus?
Holding and administration companies benefit from a reduced capital tax rate of 0.05‰ of taxable equity with a minimum of CHF 500 per year. Their profit tax position is typically light due to participation relief and the STAF-aligned framework. For material structures, the exact treatment is often clarified via advance tax rulings, especially when cross-border issues and Pillar 2 considerations are involved.
What is the combined corporate tax burden (incl. federal tax) in Glarus?
For ordinary capital companies in the capital Glarus, the combined corporate income tax burden – including cantonal, communal and federal tax – is in the low-teens, with effective rates of around 12–13% of profit before tax in recent years. The exact rate depends on the tax year, the municipality, the company’s use of participation relief and STAF instruments, and the structure of its income.
Where can I check the current Glarus rates and use an official calculator?
The most reliable sources are the Glarus tax administration’s official documentation (Steuergesetz, tax factors and guidelines for juristic persons) and the online Gewinn- & Kapitalsteuer calculator for juristic persons. For cross-cantonal comparisons, Swiss federal tax statistics and independent corporate tax comparison reports are useful. For material investment or structuring decisions, it is advisable to confirm the relevant rates and interpretations in writing or via an advance tax ruling.
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