St. Gallen Corporate & Capital Tax Rates
Last updated: 09 Dec 2025
St. Gallen Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of St. Gallen: simple cantonal rates, the cantonal tax factor, minimum tax, approximate effective combined burdens (including federal tax), and tools to model the tax load for companies.
Overview
Companies in St. Gallen 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 sets simple rates for profit and capital tax (expressed as a percentage or per-mille), and multiplies them by a tax factor (Steuerfuss). The communal share for companies is integrated into this overall tax factor, so companies see a unified cantonal/communal rate when using official tools.
This page summarises the key rates for capital companies and cooperatives (Kapitalgesellschaften und Genossenschaften) and shows how to interpret them in practice.
Statutory Cantonal Rates (Capital Companies & Cooperatives)
The following table summarises the core cantonal profit and capital tax parameters for St. Gallen capital companies since the STAF-related reforms around 2020.
| From / to | Simple profit tax rate | Simple capital tax rate | Tax factor (Steuerfuss) | Comment |
|---|---|---|---|---|
| Until 31 Dec 2019 | 3.75% (previously 3.0%) | 0.2‰ | 335% | Pre-STAF regime; higher overall cantonal burden. |
| From 1 Jan 2020 | 2.80% | 0.2‰ | 302% | STAF implementation; reduction of tax factor and profit rate. |
| From 1 Jan 2022 | 2.80% | 0.2‰ | 297% | Further reduction of the cantonal tax factor. |
| From 1 Jan 2023 | 2.80% | 0.2‰ | 292% | Latest published tax factor; overall burden slightly reduced again. |
The statutory simple rates and tax factor are set out in the St. Gallen tax act and official guidance for capital companies (Kapitalgesellschaften). Always check the current tax factor for the specific tax year you are modelling.
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in St. Gallen is the result of stacking:
- St. Gallen profit tax (cantonal/communal); and
- Swiss direct federal corporate income tax at 8.5% on profit after tax (approx. 7.8% on profit before tax).
For a company located in the city of St. Gallen, external benchmarks for tax year 2022 show an approximate statutory combined rate of 16.8% and an effective rate of about 14.4% (after taking into account the deductibility of taxes themselves from the tax base.
The precise rate for your company will depend on:
- Tax year (as tax factors can change);
- Location (if a special communal factor applies);
- Use of participation relief, patent box or R&D deductions; and
- Any special status or rulings.
Illustrative example
Assume a standard capital company in St. Gallen with:
- Taxable profit before tax: CHF 1,000,000;
- No special regimes or participation relief; and
- Standard St. Gallen tax factor for the year.
Then, very roughly:
- Cantonal/communal profit tax will account for roughly half to two-thirds of the combined burden; and
- Federal corporate income tax will account for the remaining third to half.
For more precise numbers by year and commune, use:
- The official St. Gallen company tax calculator , and
- The hub’s own St. Gallen tax calculator.
The values above are illustrative only and do not replace a formal calculation or tax ruling. For investment decisions or group structuring, always work with current year data and, where material, local advisors.
Minimum Tax & Special Statuses
Minimum tax (Mindeststeuer)
St. Gallen applies a minimum tax for capital companies and cooperatives:
- From the fifth business year after incorporation, if the sum of simple profit and capital tax does not reach a statutory minimum amount (e.g. CHF 100 simple minimum, multiplied by the tax factor), the minimum tax applies instead.
- This ensures that even low-profit or loss-making companies contribute a base tax amount each year.
For very small companies or companies in start-up or loss phases, the minimum tax is often the binding burden.
Special statuses
Historically, St. Gallen has recognised special statuses such as holding, domiciliary and mixed companies with:
- Reduced or zero profit tax on certain income; and
- Reduced capital tax per-mille rates with a minimum capital tax.
These regimes have been transformed in the context of Swiss corporate tax reform (STAF), with more emphasis on instruments such as the patent box and R&D deductions. For existing structures and new investments, advance tax rulings are commonly used to confirm the applicable rate mix and the interaction between profit and capital tax.
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 St. Gallen |
|---|---|---|
| St. Gallen company tax calculator | Computes cantonal/communal and federal tax for capital companies and cooperatives based on profit before tax and location. | Select the relevant tax year, enter profit before tax and the commune. Use the results as a check against your own models and as input for budgeting and pricing. |
| Swiss federal tax calculator | Provides comparative views of tax burdens across cantons and over time. | Use it to compare St. Gallen with alternative cantons for corporate location decisions and to benchmark effective rates over several years. |
| TaxRep St. Gallen calculator (this hub) | Applies combined St. Gallen cantonal/communal and federal profit and capital tax parameters to your own profit and equity figures. | See the calculator page of this hub for a tailored company-level modelling tool that aligns with the explanations in the corporate tax and capital tax sections. |
Planning Considerations
| Theme | Rate impact | What to watch |
|---|---|---|
| Location choice within St. Gallen | Corporate rates for companies are largely harmonised via a unified tax factor, but local variations and special economic zones can still influence the effective burden. | Confirm the applicable tax factor for the chosen commune and year; use calculators to compare alternative locations. |
| Financing structure | Adjusting the mix of equity and debt affects capital tax (on equity) and the profit tax effects of interest deductions and thin-cap rules. | Avoid excessive shareholder debt that might be requalified as hidden equity; coordinate with group financing policies and transfer pricing. |
| Use of STAF instruments | Patent box and R&D deductions can considerably reduce the effective profit tax rate on qualifying income. | Check St. Gallen implementation details and relief caps; maintain robust documentation for nexus and cost allocation. |
| Holding and IP structures | Location of holdings and IP within or outside St. Gallen can shift the combined profit and capital tax burden and eligibility for reliefs. | Model scenarios using both cantonal and federal tools; obtain rulings where structures are material or innovative. |
| Lifecycle events | Mergers, spin-offs, migrations of seat or liquidations can temporarily change the effective tax rate and crystallise hidden reserves. | Plan transactions with rate changes and minimum tax in mind; align with St. Gallen and federal tax practice and seek rulings for significant restructurings. |
FAQs
What is the corporate income tax rate in St. Gallen?
St. Gallen applies a simple cantonal profit tax rate of 2.80% for capital companies and cooperatives, multiplied by a tax factor (Steuerfuss) that has been reduced from 335% to 292% over recent years. On top of this, companies pay Swiss direct federal corporate income tax at 8.5% on profit after tax (about 7.8% before tax). The combined effective rate for a standard company in St. Gallen is therefore in the mid-teens, depending on year, location and reliefs.
What is the capital tax rate for companies in St. Gallen?
The simple capital tax rate for capital companies is 0.2‰ of equity, multiplied by the same tax factor as for profit tax. In practice, the effective capital tax burden depends on the company’s equity level, financing structure and any applicable reliefs (e.g. for participations).
How does the minimum tax work?
If a company’s combined simple profit and capital tax does not reach a statutory minimum (e.g. CHF 100 simple minimum, multiplied by the Steuerfuss), the minimum tax applies instead. This is particularly relevant for small, loss-making or asset-light companies.
Are the same rates used for all companies?
The simple rates for profit and capital tax are the same for capital companies and cooperatives, but special statuses (e.g. holding or mixed companies), STAF instruments and local factors can change the effective rate significantly. Associations, foundations and entities with ideal or charitable purpose may be subject to different rules or exemptions.
Where can I check the current year’s rates?
The most reliable sources are the official St. Gallen tax administration website and the cantonal company tax calculator, plus the federal Swiss tax calculator for cross-cantonal comparisons. For material decisions, it is advisable to confirm rates and factors in writing or via a ruling request.
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