Lucerne Corporate & Capital Tax Rates
Last updated: 09 Dec 2025
Lucerne Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of Lucerne: simple cantonal profit and capital tax rates, the cantonal tax units, typical effective combined burdens (including federal tax), and tools to model the tax load for companies in Lucerne.
Overview
Companies in Lucerne 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.
The canton applies a simple proportional profit tax for capital companies and cooperatives (Kapitalgesellschaften und Genossenschaften): the simple tax per unit is a fixed percentage of net profit. At the cantonal level this simple profit tax is:
- 1.5% of net profit per tax unit for capital companies and cooperatives.
For both profit and capital tax, Lucerne defines simple rates, which are multiplied by:
- the cantonal tax units (Staatssteuereinheiten), and
- the communal tax units (Steuereinheiten der Gemeinden) for the relevant municipality.
This page summarises the key parameters for capital companies and cooperatives, explains how the Lucerne model works in practice and shows where Lucerne stands in inter-cantonal comparisons.
Statutory Cantonal Rates (Capital Companies & Cooperatives)
The following table summarises the core Lucerne cantonal profit and capital tax parameters for capital companies in recent years. The simple profit tax rate per unit is stable, while the cantonal tax units and the simple capital tax rate have been adjusted to improve the canton’s attractiveness.
| From / to | Simple profit tax rate (per tax unit) |
Simple capital tax rate (per tax unit) |
Cantonal tax units (Staatssteuereinheiten) |
Comment |
|---|---|---|---|---|
| Until 31 Dec 2019 | 1.5% of net profit | 0.5‰ of taxable equity | 1.60 | Pre-reform regime: ordinary capital tax at 0.5‰ per unit of taxable equity and cantonal tax units of 1.60; Lucerne was already a relatively competitive location compared with many other cantons. |
| From 1 Jan 2020 | 1.5% of net profit | 0.5‰ of taxable equity | 1.70 | Temporary increase of the cantonal tax units for tax years 2020–2021 to 1.70; the simple profit and capital tax rates remain unchanged, but the cantonal share of the burden rises slightly. |
| From 1 Jan 2022 | 1.5% of net profit | 0.5‰ of taxable equity | 1.60 | Reduction of the cantonal tax units back to 1.60 from 2022. Combined with communal units, Lucerne offers effective corporate income tax rates around 12% in attractive communes. |
| From 1 Jan 2025 | 1.5% of net profit |
0.25‰ of taxable equity (0.01‰ for qualifying participations, IP and intra-group receivables) |
1.55 | Capital tax reform: reduction of the ordinary simple capital tax rate per unit from 0.5‰ to 0.25‰ for 2025–2027 and 0.01‰ from 2028 onwards. The cantonal tax units are lowered to 1.55, further strengthening Lucerne as a low-tax corporate location. |
The simple profit tax rate (1.5% of net profit per unit) and the simple capital tax rates are set in the Lucerne tax act. The cantonal tax units are determined by the canton, while communal and church units are set by each municipality. For precise modelling, always confirm both the tax year and the company’s commune (e.g. City of Lucerne, Meggen, Kriens, Horw).
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in Lucerne is the result of stacking:
- Lucerne profit tax (cantonal + communal +, where applicable, church units); and
- Swiss direct federal corporate income tax at 8.5% on profit after tax (approx. 7.8% on profit before tax).
External benchmarks for recent tax years show that Lucerne is among the lower-tax cantons for ordinary companies. For a company located in the City of Lucerne, the combined statutory rate on profit before tax is typically in the area of around 12%, with some low-tax communes such as Meggen slightly below this level.
The capital tax burden is modest in comparison. For example, with an ordinary capital tax rate per unit of 0.25‰ for 2025–2027 and around 3.3–3.5 tax units in many communes, the combined capital tax rate is well below 1‰ of equity, and qualifying participations, IP and intra-group receivables benefit from a 0.01‰ rate.
The actual effective rate for your company will depend on:
- Tax year (because cantonal tax units and capital tax rates have changed);
- Commune and church tax status (company units differ by municipality);
- Use of participation relief, patent box and R&D deductions; and
- Any special status or rulings (e.g. for holdings or IP-rich structures).
Illustrative example (City of Lucerne)
Assume a standard capital company in the City of Lucerne with:
- Taxable profit before tax: CHF 1,000,000;
- Taxable equity: CHF 2,000,000;
- No special regimes, participation relief or patent box; and
- Current cantonal, communal and church units for the year.
Then, very roughly:
- The combined profit tax burden (Lucerne + federal) will be around the low-teens as a percentage of profit before tax (approximately 11–12%), depending on the exact communal units and year.
- The capital tax burden will be on the order of 0.08% of equity (0.8‰) for ordinary equity components in the City of Lucerne, with a substantially reduced rate of 0.01‰ on qualifying participations, IP and intra-group receivables.
For more precise numbers by year and commune, use:
- The official Lucerne company tax calculator, and
- This hub’s own Lucerne tax calculator (once configured with Lucerne parameters).
The values above are indicative only and do not replace a formal calculation or tax ruling. For location decisions, group structuring and major investments, always work with current year data and, where material, local advisors and written confirmations.
Thresholds, Minimums & Special Statuses
Thresholds & de facto minimum burden
Lucerne does not apply a single flat minimum tax amount that is identical for all capital companies. Instead, a combination of tariff thresholds and capital tax rules creates a practical minimum burden:
- The profit tax is proportional, but very low profits may result in modest absolute tax amounts, especially in low-tax communes.
- Capital tax is levied on taxable equity; for very small equity levels the absolute amount remains low, and in profitable years capital tax can effectively be absorbed through crediting mechanisms and the relative importance of profit tax.
For some types of associations, foundations and other entities, Lucerne applies explicit exemptions for low profits and low capital levels, meaning that below certain thresholds no profit or capital tax is levied, even though filing and reporting obligations may still exist.
Special statuses & preferential regimes
In the post-reform landscape, Lucerne focuses on maintaining a low ordinary rate and a very favourable capital tax regime, especially for:
- qualifying shareholdings (participations);
- intangible assets (IP); and
- intra-group receivables.
For these asset categories, the simple capital tax rate is reduced to 0.01‰ from 2025, making Lucerne particularly attractive for holding and IP-rich entities when combined with participation relief and, where applicable, patent box and R&D deductions.
For larger or more complex structures, it is common to obtain advance tax rulings to:
- Confirm the classification of assets and the applicable capital tax rate;
- Clarify the interaction with federal rules and any Pillar 2 top-up exposure; and
- Provide planning certainty for long-term investments and reorganisations.
Modelling Tools & Calculators
To quantify the tax burden for a specific company, it is best to use a combination of official and independent tools:
| Tool | What it does | How to use it for Lucerne |
|---|---|---|
| Lucerne company tax calculator | Computes cantonal/communal and federal tax for capital companies and cooperatives based on profit, equity and location, using Lucerne’s simple rates and tax units. | Use the official calculators of the Lucerne tax administration. Select the relevant tax year and the commune (e.g. City of Lucerne, Meggen). Enter profit before tax and equity, and use the results to benchmark internal models and budget scenarios. |
| Swiss federal tax calculator / statistics | Provides comparative views of corporate tax burdens across cantons and over time, including Lucerne and key competitor cantons. | Use it to benchmark Lucerne against alternative locations such as Zug, Schwyz or Zurich for corporate location or expansion decisions. |
| TaxRep Lucerne calculator (this hub) | Applies Lucerne’s profit tax and capital tax parameters, together with federal tax, to your own profit and equity figures, in a way that aligns with this guide’s explanations. | See the calculator page of this hub for a tailored company-level modelling tool once the Lucerne parameters are configured. |
Planning Considerations
| Theme | Rate impact | What to watch |
|---|---|---|
| Commune choice within Lucerne | Communal tax units vary noticeably between Lucerne municipalities. For the same cantonal framework, the total combined burden can differ by multiple percentage points and several tenths of a per-mille on capital tax. | Compare the combined units for relevant communes (e.g. City of Lucerne versus Meggen or Horw). Use official calculators and independent benchmarks when choosing or reassessing a domicile. |
| Financing structure | The mix of equity and debt affects capital tax (levied on equity) and profit tax through interest deductions and thin-capitalisation constraints. | Avoid excessive shareholder or intra-group debt that could be recharacterised as hidden equity. Coordinate Lucerne tax views with group treasury, transfer pricing and withholding tax planning. |
| Use of participation relief & IP regimes | Participation relief, favourable capital tax treatment for qualifying participations and IP, and any available patent box / R&D incentives can significantly reduce the effective tax burden. | Confirm eligibility conditions and interaction with federal law. Maintain robust documentation for qualifying shareholdings, IP portfolios and related income streams. |
| Holding and IP structures | Locating holdings or IP-rich entities in Lucerne benefits from low ordinary profit tax rates and a very attractive capital tax regime, especially for participations and IP. | Model scenarios including alternative cantons, taking into account substance requirements, workforce and infrastructure. Obtain rulings where material IP or financing structures are planned. |
| Lifecycle events & reorganisations | Mergers, spin-offs, contributions in kind and relocations of seat can crystallise hidden reserves and temporarily change the effective tax burden. | Plan transactions in line with Lucerne and federal practice, including deferral mechanisms and loss-utilisation rules. For significant or novel transactions, seek advance tax rulings to secure treatment. |
FAQs
What is the corporate income tax rate in Lucerne?
Lucerne applies a proportional cantonal profit tax for capital companies: the simple tax is 1.5% of net profit per tax unit. This simple tax is multiplied by the cantonal tax units and the relevant communal and church units. On top of this, companies pay Swiss direct federal corporate income tax at 8.5% on profit after tax (about 7.8% before tax). For a standard company in the City of Lucerne, the combined ordinary rate on profit before tax is typically around the low-teens (roughly 11–12%), with some low-tax communes slightly below this level.
What is the capital tax rate for companies in Lucerne?
The simple cantonal capital tax rate for capital companies is 0.5‰ of taxable equity per tax unit through 2024, reduced to 0.25‰ per unit for 2025–2027 and to 0.01‰ from 2028 onwards. These simple rates are multiplied by the cantonal and communal tax units. For City of Lucerne companies, this corresponds to a combined ordinary capital tax rate well below 1‰ of equity, with a very low 0.01‰ rate for qualifying participations, IP and intra-group receivables.
Is there a minimum tax for companies in Lucerne?
Lucerne does not levy a single flat minimum tax for all capital companies. However, the combination of proportional profit tax and capital tax on equity results in a practical minimum burden for profitable and well-capitalised companies. For certain other entity types, such as associations and foundations, Lucerne grants explicit exemptions below defined profit and capital thresholds.
Are the same rates used for all companies?
The statutory simple rates are the same for capital companies and cooperatives, but the effective rate varies with the commune, the company’s profit and equity levels, the use of participation relief, IP-related regimes and R&D deductions, and any special rulings. Entities with ideal or charitable purposes may benefit from reduced tariffs or exemptions.
Where can I check the current year’s Lucerne rates and tax units?
The most reliable sources are the official Lucerne tax administration (including the online company tax calculators and the annual tables of cantonal and communal tax units), together with federal Swiss tax statistics and independent corporate tax benchmarking reports. For material investment or structuring decisions, it is advisable to confirm the applicable rates and any special regimes in writing or via an advance tax ruling.
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