Thurgau Corporate & Capital Tax Rates
Last updated: 13 Dec 2025
Thurgau Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of Thurgau: simple cantonal rates, the cantonal and communal tax factor, minimum tax, the crediting of capital tax against profit tax, approximate effective combined burdens (including federal tax), and tools to model the tax load for companies.
Overview
Companies in Thurgau pay a combination of:
- Cantonal and communal profit tax on taxable profit;
- Cantonal and communal capital tax on equity; and
- Direct federal corporate income tax on profit.
The canton sets simple rates for profit and capital tax and then applies tax factors (Steuerfüsse) at cantonal and communal level. The state tax factor is set centrally, while the communal factors vary by municipality. For companies, the overall burden therefore depends on both the cantonal rules and the chosen commune.
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 Thurgau capital companies, focusing on the reforms linked to the corporate tax reform (STAF) and their aftermath.
| From / to | Simple profit tax rate | Simple capital tax rate | Tax factor (Steuerfuss) | Comment |
|---|---|---|---|---|
| Until 31 Dec 2019 | 4.0% on taxable net profit | 0.30‰ of taxable equity | State and communal factors applied to simple tax; overall corporate tax burden (incl. federal tax) in the mid-teens. | Pre-STAF regime with higher profit and capital tax. Separate holding and mixed-company statuses still in effect. |
| From 1 Jan 2020 | 2.5% on taxable net profit | 0.15‰ of taxable equity, min. CHF 200 | State tax factor unified; communal factors set at municipal level. Capital tax can be credited with profit tax (general imputation mechanism). | STAF implementation: substantial reduction of profit tax rate and capital tax, combined with abolition of cantonal status-company regimes and introduction of internationally accepted instruments. |
| From 1 Jan 2025 |
2.5% on taxable net profit (with possible upward adjustment for large multinational groups to meet the 15% minimum) |
0.15‰ of taxable equity, min. CHF 200 (unchanged) | State tax factor 109% (since 2022) plus communal tax factors; combined cantonal/communal burden varies moderately by municipality. | Latest published parameters. Corporate tax rules coordinated with OECD minimum tax for very large groups via a separate top-up mechanism. |
For capital companies and cooperatives, the Thurgau Steuergesetz provides a simple profit tax of 2.5% of taxable net profit and a simple capital tax of 0.15‰ of taxable equity with a minimum of CHF 200 per year. Communal and cantonal tax factors are applied to these simple amounts to obtain the actual cantonal/communal tax due for a given tax year and municipality.
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in Thurgau results from stacking:
- Thurgau profit tax (cantonal and communal); and
- Swiss direct federal corporate income tax at 8.5% on profit after tax (approx. 7.8% on profit before tax).
External benchmarks for tax year 2024 indicate a combined effective corporate income tax rate (profit tax only, incl. federal tax) of around 13.2% of profit before tax for a standard company in a representative Thurgau municipality (often expressed using Frauenfeld as the reference location).
The precise rate for a specific company depends on:
- Tax year and current cantonal/communal tax factors;
- Location within Thurgau (communal factors differ);
- Use of participation relief and any STAF instruments (e.g. patent box); and
- Company size (large multinationals may be affected by the 15% minimum tax).
Illustrative example
Assume a standard capital company in Thurgau with:
- Taxable profit before tax: CHF 1,000,000;
- Taxable equity: CHF 5,000,000;
- No special regimes or participation relief; and
- Average Thurgau cantonal and communal tax factors for the year.
Then, very roughly:
- Cantonal/communal profit tax will account for a bit less than half of the combined burden;
- Direct federal corporate income tax will account for slightly more than half; and
- Capital tax will normally be fully credited against profit tax, provided the company’s profit is at least around 0.6% of equity, so that separate capital tax does not remain as an additional burden.
For companies with very low profit relative to equity (or in loss situations), capital tax can become the binding cantonal burden; for highly profitable companies, profit tax dominates and capital tax imputation means there is usually no separate capital tax cost.
For precise figures by commune and year, use:
- The official Thurgau company tax calculator; and
- The hub’s own Thurgau tax calculator.
The indicative combined rates above are benchmarks based on published cantonal and independent comparisons. They do not replace a formal calculation or a tax ruling. For investment decisions, group location planning or major transactions, always obtain current-year data and consider written confirmation of the applicable rate structure.
Minimum Tax & Special Mechanisms
Capital tax, credit & real estate minimum tax
For capital companies and cooperatives, Thurgau applies:
- A simple capital tax of 0.15‰ of taxable equity with a minimum of CHF 200 per year; and
- A general rule that profit tax is credited against capital tax. As soon as the cantonal/communal profit tax exceeds the capital tax, the capital tax is imputed and no separate capital tax remains.
In addition, Thurgau levies a minimal tax on real estate in certain cases:
- Where a company or collective investment scheme owns real estate in the canton, and a specific Minimalsteuer on the property (calculated as a percentage of market value) exceeds the sum of regular profit and capital tax, this property-based minimal tax is charged instead.
- The minimal tax mechanism is particularly relevant for asset-rich, low-profit entities (e.g. property SPVs).
For companies without Thurgau real estate, the main “minimum” is effectively the capital tax with the CHF 200 floor, subject to profit-tax credit.
Special statuses & STAF instruments
Traditional holding, domiciliary and mixed-company tax statuses have been abolished as part of the STAF implementation. Thurgau now relies on a combination of:
- A reduced capital tax base for equity financing qualifying participations, intra-group loans and patents or comparable IP (only a fraction of this equity is taken into account for capital tax); and
- Internationally accepted relief instruments (such as a patent box), subject to a relief cap that limits the combined effect of all special measures to a set percentage of taxable profit.
In practice, the participation relief at profit-tax level (for dividend and capital gains from qualifying participations) and the capital tax reduction for participations, group financing and IP are the most important tools for group structures in Thurgau.
For material structures, tax rulings are commonly used to clarify how the participation relief, capital-tax reduction and any patent-box income interact over time.
Modelling Tools & Calculators
To quantify the tax burden for a specific company in Thurgau, it is best to use a combination of official and independent tools:
| Tool | What it does | How to use it for Thurgau |
|---|---|---|
| Thurgau company tax calculator | Computes cantonal/communal profit and capital tax (incl. capital-tax credit) plus direct federal tax for capital companies and cooperatives. | Select the relevant tax period, choose the municipality, and enter taxable profit and equity. Use the output as a benchmark against your own models and for budgeting, pricing and dividend-policy planning. |
| Swiss federal tax calculator | Provides comparative views of total tax burdens across cantons and over time, with harmonised assumptions. | Use it to compare Thurgau with alternative cantons for corporate location decisions and to see how far its combined effective rate sits below or above the Swiss average. |
| TaxRep Thurgau calculator (this hub) | Applies Thurgau-specific profit and capital tax parameters (including capital-tax credit, minimum tax and participation relief) together with federal tax to your own profit and equity projections. | See the calculator page of this hub for a tailored company-level modelling tool aligned with the explanations in the corporate tax and capital tax sections. |
Planning Considerations
| Theme | Rate impact | What to watch |
|---|---|---|
| Location choice within Thurgau | The simple profit and capital tax rates are uniform across the canton, but communal tax factors differ. This creates meaningful variation in the effective cantonal/communal burden between municipalities. | Compare several candidate communes using the cantonal and federal calculators. For capital-intensive groups, also factor in real-estate minimal tax and non-income-tax levies. |
| Financing structure | The mix of equity and debt affects the capital tax base (equity) and the profit-tax effects of interest deductions. Because capital tax is credited against profit tax above a certain profit-to-equity ratio, the effective impact of capital tax diminishes as profitability increases. | Avoid excessive shareholder or group debt that might be requalified as hidden equity. Coordinate debt-equity ratios with group treasury and transfer-pricing policies. |
| Use of participations and IP | Qualifying participations and certain IP structures can benefit from participation relief and reduced capital-tax base, significantly reducing the effective tax rate on relevant income and capital. | Identify entities that could qualify as participation or IP companies. Model the interaction of profit-tax relief, capital-tax reduction and any patent-box income within the overall relief cap; obtain rulings where material. |
| Interaction with global minimum tax | Large multinational groups subject to the 15% minimum tax may face a top-up if the combined Swiss rate for qualifying profits is below the minimum. | For in-scope groups, model the Thurgau and Swiss effective tax rate under GloBE rules and assess whether a top-up could arise in another jurisdiction. Consider restructuring or safe-harbour options if exposure is material. |
| Lifecycle events & real estate | Acquisitions, mergers, spin-offs, migrations of seat, and real-estate transactions can change the profit-to-equity ratio and trigger or increase the real-estate minimal tax. | For property-rich structures, compare the ordinary profit/capital tax with the minimal tax on real estate before transactions. Align corporate tax planning with real-estate strategy and, where necessary, obtain advance rulings. |
FAQs
What is the corporate income tax rate in Thurgau?
Thurgau applies a simple cantonal profit tax rate of 2.5% on taxable net profit for capital companies and cooperatives. This simple tax is multiplied by cantonal and communal tax factors to obtain the actual cantonal/communal burden. On top of this, companies pay Swiss direct federal corporate income tax at 8.5% on profit after tax (about 7.8% of profit before tax). Benchmark calculations for a standard company in a representative Thurgau municipality show a combined effective rate (cantonal/communal + federal) of roughly 13.2% of profit before tax, depending on the commune and reliefs.
What is the capital tax rate for companies in Thurgau?
For capital companies and cooperatives, the simple capital tax in Thurgau is 0.15‰ of taxable equity, with a minimum of CHF 200 per year. This simple capital tax is also multiplied by the relevant cantonal and communal tax factors. However, the profit tax is credited against the capital tax: if the cantonal/communal profit tax exceeds the capital tax, the capital tax is fully imputed and no separate capital tax remains payable.
How does the capital-tax credit work in practice?
In Thurgau, the cantonal corporate tax rules provide that the profit tax is credited against capital tax. In practical terms, this means:
- Companies always calculate both profit tax and capital tax based on the simple rates and tax factors; and
- If the calculated profit tax is greater than the capital tax, capital tax is imputed and no additional capital tax is due; if profit tax is very low (e.g. in low-profit or loss years), capital tax (subject to the CHF 200 minimum) becomes the binding cantonal burden.
For companies with a profit of at least around 0.6% of equity, the profit tax will normally exceed the capital tax so that capital tax does not add to the overall burden.
Is there a minimum tax for companies with real estate in Thurgau?
Yes. Juristic persons and collective investment schemes with directly held real estate in Thurgau may be subject to a real-estate minimal tax. If the minimal tax on the market value of the property exceeds the sum of the ordinarily calculated profit and capital tax, this minimal tax replaces the ordinary cantonal/communal profit and capital tax for the relevant period. Companies without Thurgau real estate are not affected by this property-based minimal tax and instead face only profit and capital tax (with capital-tax credit).
Are the same rates used for all companies?
The simple profit and capital tax rates are the same for all capital companies and cooperatives, but the effective rate differs depending on:
- The commune (different communal tax factors);
- The use of participation relief, capital-tax reductions and any patent-box income;
- The company’s profit-to-equity ratio (because of capital-tax credit); and
- Special rules for charities, non-profit organisations and tax-exempt entities.
Associations, foundations and entities with ideal or charitable purposes may be partially or fully exempt from profit and/or capital tax if the statutory criteria are met.
Where can I check the current year’s rates and factors?
The most reliable sources are:
- The Thurgau Steuergesetz, Kantonsblatt and guidance of the Thurgau tax administration (for simple rates, capital-tax rules, minimal tax and capital-tax credit); and
- The official Thurgau company tax calculator and the federal Swiss tax calculator (for combined effective burdens and cantonal comparisons).
For material structuring or location decisions, it is advisable to confirm the applicable rates and reliefs in writing, for example via an advance tax ruling.
Get Thurgau rate & structuring advice (Sesch TaxRep GmbH) Thurgau cantonal tax service