Vaud Corporate & Capital Tax Rates
Last updated: 13 Dec 2025
Vaud Corporate & Capital Tax Rates
How corporate profit and capital tax rates work in the Canton of Vaud: simple cantonal rates, the progressive profit tax above CHF 10 million, cantonal and communal multipliers, capital tax and minimum tax rules, approximate effective combined burdens (including federal tax), and tools to model the tax load for companies.
Overview
Companies in Vaud pay a combination of:
- Cantonal and communal profit tax on taxable profit (impôt sur le bénéfice);
- Cantonal and communal capital tax on equity (impôt sur le capital); and
- Direct federal corporate income tax on profit.
The canton sets base (simple) rates for profit and capital tax in the Vaud direct tax act
(Loi sur les impôts directs cantonaux, LI). For capital companies and cooperatives, the
base profit tax is 3 1/3 % of net profit, applied at a uniform cantonal level and then
multiplied by a cantonal coefficient (155 % in recent years) and a
communal coefficient that varies by municipality. From 2025, profit above CHF 10 million
is taxed at a higher simple rate (3.75 %).
Capital tax is levied at 0.6 ‰ of taxable equity. Profit tax is imputable against capital tax
for companies in scope.
This page summarises the key parameters for capital companies and cooperatives (sociétés de capitaux et sociétés coopératives) and explains how to interpret them in practice.
Statutory Cantonal Rates (Capital Companies & Cooperatives)
The table below focuses on the post-reform regime, where Vaud reduced its corporate tax rate and later introduced a progressive rate above CHF 10 million of net profit in the context of the 15 % global minimum tax.
| From / to | Simple profit tax rate (base cantonal tax) |
Simple capital tax rate | Cantonal coefficient & communal multipliers | Comment |
|---|---|---|---|---|
| From 1 Jan 2019 to 31 Dec 2024 |
3 1/3 % of net profit for capital companies and cooperatives. (Same simple rate for associations, foundations and other legal entities from 2021.) |
0.6 ‰ of taxable equity for all legal entities; profit tax due by capital companies and cooperatives is imputable against capital tax. | Base profit tax × cantonal coefficient (155 % in 2024) × municipal coefficient (varies by commune). | STAF implementation in Vaud: significant reduction of the combined corporate income tax rate to around 13.8–14.0 % in Lausanne (including federal tax). Ordinary rate is proportional, no profit threshold yet. |
| From 1 Jan 2025 |
Progressive simple profit tax for capital companies and cooperatives: – 3 1/3 % on the part of net profit up to CHF 10 million; – 3.75 % on the part of net profit above CHF 10 million. |
0.6 ‰ of taxable equity (unchanged). Profit tax remains imputable against capital tax. |
Base profit tax × cantonal coefficient (155 % for 2025) × municipal coefficient. The progressive simple rate for profits above CHF 10 million pushes the combined effective rate (including federal tax) from about 14.0 % to around 14.7 % for that profit slice. |
Adaptation to the OECD global minimum tax: the higher simple rate on profits above CHF 10 million ensures a combined effective rate close to 14.7 % on that portion, reducing the need for top-up tax at group level. |
The simple profit tax rate (3 1/3 %) and capital tax rate (0.6 ‰) are set in the Vaud tax legislation. For companies, the actual cantonal and communal profit tax is obtained by multiplying the base tax by the cantonal and municipal coefficients. When modelling a specific company, always work with the coefficients for the relevant tax year and commune (e.g. Lausanne: 78.5 % municipal coefficient, 155 % cantonal coefficient in recent years).
Effective Combined Tax Burden
Cantonal/communal + federal
The effective corporate income tax rate in Vaud results from stacking:
- Vaud profit tax (cantonal and communal) calculated from the simple rate and coefficients; and
- Swiss direct federal corporate income tax at 8.5 % on profit after tax (approximately 7.8 % on profit before tax).
External benchmarks for recent years show that in Lausanne:
- The combined statutory corporate income tax rate (cantonal, communal + federal) is around 14.0 % on profit before tax for profits up to CHF 10 million; and
- For the portion of profit above CHF 10 million, the new progressive simple rate from 2025 increases the combined rate to about 14.7 %.
These values place Vaud in the competitive Swiss mid-field: clearly below traditional high-tax cantons, but above the very lowest-tax cantons such as Zug or Nidwalden. For many operating businesses in the Lake Geneva region, the trade-off between rate level and ecosystem (talent, infrastructure, cluster effects) is attractive.
The precise effective rate for a given company will depend on:
- Municipality (different communal coefficients around the cantonal base);
- Tax year and any changes in coefficients or federal rules;
- Use of participation relief, patent box and additional R&D deduction; and
- Profit level (in particular whether profits exceed CHF 10 million).
Illustrative example (Lausanne)
Assume a standard capital company in Lausanne with:
- Taxable profit before tax: CHF 1,000,000;
- Taxable equity: CHF 5,000,000;
- No patent box or additional R&D deductions, normal participation relief only; and
- Ordinary cantonal and communal coefficients for the year.
Then, very roughly:
- Cantonal/communal profit tax will account for a bit more than half of the combined burden;
- Federal corporate income tax will account for the remainder (around 7.8 % on profit before tax, deductible from the cantonal base);
- Capital tax at 0.6 ‰ on equity (CHF 3,000 in this example) will usually be modest relative to profit tax and may be effectively neutralised where profit tax is sufficiently high and imputable.
For large, highly profitable companies with net profit significantly above CHF 10 million, the higher simple profit tax rate for that portion will move the combined effective rate closer to 14.7 %, subject to the exact communal coefficient and available reliefs.
For precise calculations by commune and year, use:
- The official Vaud corporate tax tools (impôt sur le bénéfice & impôt sur le capital); and
- The hub’s own Vaud tax calculator.
The combined rate figures above are benchmarks based on current Vaud legislation and independent comparative studies. They are intended for orientation only and do not replace a formal calculation or a tax ruling. For major investments, relocations or complex group structures, always work with current year data and consider obtaining written confirmation from the Vaud tax authorities.
Capital Tax & Minimum Tax
Capital tax & interaction with profit tax
Vaud levies an annual capital tax on the equity of legal entities:
- For capital companies and cooperatives, the simple capital tax rate is 0.6 ‰ of taxable equity (capital propre imposable).
- The cantonal and communal capital tax is obtained by multiplying the base tax amount by the same coefficients used for profit tax.
- For associations, foundations and other legal entities, capital tax is not levied where equity is below CHF 200,000 (from the 2020 tax period).
Importantly, profit tax is imputable against capital tax for capital companies and cooperatives: the cantonal and communal profit tax due is credited against capital tax. Where profit tax exceeds capital tax, there is effectively no additional capital tax burden; where profit tax is low or zero, capital tax becomes the binding cantonal burden (subject to minimum tax rules).
In practice, for profitable operating companies, the effective impact of capital tax is often limited, while for asset-heavy, low-margin structures it can be more significant.
Minimum tax on gross receipts & invested capital
Vaud also applies an impôt minimum for legal entities that operate a business:
- The minimum tax is calculated on gross receipts and invested capital and is due in lieu of the ordinary profit and capital taxes where it exceeds the sum of those taxes.
-
For capital companies and cooperatives, the minimum tax rates are, from the 2019 tax period:
- 0.05 ‰ on gross receipts from wholesale trade;
- 0.14 ‰ on gross receipts from manufacturing; and
- 0.28 ‰ on other gross receipts (e.g. retail, services);
- In addition, 0.1 ‰ is levied on invested capital, but this part of the minimum tax may not exceed the amount of minimum tax calculated on gross receipts.
Newly created companies are exempt from the minimum tax for the first two financial years of their existence. Companies in serious financial difficulty can also obtain relief from the minimum tax in specific circumstances.
For many operating companies with normal margins, ordinary profit and capital taxes will exceed the minimum tax so that the minimum never becomes binding. For very low-margin or loss-making entities with high turnover or capital, the minimum tax can be the main recurring cantonal burden and should be explicitly modelled.
Modelling Tools & Calculators
To quantify the tax burden for a specific company in Vaud, it is best to combine official cantonal tools with federal calculators and your own models.
| Tool | What it does | How to use it for Vaud |
|---|---|---|
| Vaud corporate tax guidance | Official pages of the Vaud tax administration on profit tax, capital tax and minimum tax for legal entities. | Use the pages Impôt sur le bénéfice, Impôt sur le capital and Impôt minimum to confirm base rates, coefficients, imputation and minimum tax details for the current tax period. |
| Swiss federal tax calculator | Provides comparative views of combined tax burdens (cantonal/communal + federal) across cantons and over time. | Use it to compare Vaud (e.g. Lausanne) with alternative locations and to see how the progressive rate above CHF 10 million affects the effective rate in the context of the 15 % global minimum tax. |
| TaxRep Vaud calculator (this hub) | Applies Vaud’s profit and capital tax parameters (including progressive simple profit rate, coefficients, capital-tax imputation and minimum tax) together with federal tax to your own profit and equity projections. | See the calculator page of this hub for a 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 Vaud | The simple profit and capital tax rates are uniform across the canton, but communal coefficients differ, leading to meaningful variation in effective corporate income tax rates (e.g. Lausanne vs. certain lower-tax municipalities). | For new entities or relocations, compare several communes using federal or independent calculators and the Vaud guidance. Balance tax savings against access to talent, infrastructure and cluster effects (EPFL/UNIL, Lake Geneva region). |
| Profit level & global minimum tax | From 2025, profits above CHF 10 million face a higher simple profit tax rate (3.75 %), lifting the combined effective rate on that portion to around 14.7 %. For in-scope multinational groups, this interacts with the 15 % global minimum tax. | Model the Vaud effective rate for profits below and above CHF 10 million and assess whether any top-up tax could arise under GloBE rules in other jurisdictions. Coordinate Vaud planning with group level minimum-tax strategies. |
| Financing & capital structure | Capital tax at 0.6 ‰ applies annually on equity, but profit tax may be credited against it. The mix of equity and debt therefore affects both capital tax and profit tax (via interest deductions and thin-cap rules). | Avoid excessive related-party debt that may be requalified as hidden equity. Simulate the effect of different equity levels on capital tax and the minimum tax. Align Vaud financing policies with group transfer pricing. |
| Use of STAF instruments | Participation relief, patent box and additional R&D deductions can significantly reduce the effective profit tax rate for qualifying holding, IP and R&D-intensive companies. | Identify potential patent box income and qualifying R&D costs; ensure documentation meets nexus and tracking requirements. Model the overall relief cap to avoid overestimating the benefit and consider advance rulings for complex structures. |
| Minimum tax exposure | For low-margin, high-turnover businesses or asset-heavy companies, the minimum tax on gross receipts and invested capital can exceed ordinary profit and capital taxes, becoming the binding burden. | For such models, explicitly compute minimum tax and compare it with ordinary taxes. Consider the start-up exemption (first two years) and possible relief in cases of serious financial difficulty. |
| Restructurings & relocations | Mergers, spin-offs, asset transfers and seat relocations can crystallise hidden reserves and change the profit-to-equity ratio, affecting both profit and capital tax as well as minimum tax. | For significant transactions, coordinate Vaud and federal consequences and, where other cantons or countries are involved, obtain advance rulings to secure the treatment of step-ups, participation relief and minimum tax. |
FAQs
What is the corporate income tax rate in Vaud?
For capital companies and cooperatives, Vaud applies a simple cantonal profit tax rate of 3 1/3 % of net profit (base tax) multiplied by a cantonal coefficient (e.g. 155 %) and a municipal coefficient that depends on the commune. From 1 January 2025, the portion of net profit above CHF 10 million is taxed at a higher simple rate of 3.75 %. On top of this, companies pay Swiss direct federal corporate income tax at 8.5 % on profit after tax (around 7.8 % on profit before tax). In Lausanne, this leads to a combined effective rate of roughly 14.0 % for profits up to CHF 10 million and about 14.7 % for the portion above CHF 10 million.
What is the capital tax rate for companies in Vaud?
Vaud levies an impôt sur le capital on equity at a simple rate of 0.6 ‰ of taxable equity for capital companies, cooperatives and other legal entities. As with profit tax, the actual cantonal and communal capital tax is obtained by multiplying the base tax by the cantonal and municipal coefficients. For associations, foundations and other entities, capital tax is not levied where equity is below CHF 200,000 from the 2020 tax period.
How does the interaction between profit tax and capital tax work?
For capital companies and cooperatives, the cantonal and communal profit tax is imputable against capital tax. This means that profit tax due for a given year is credited against capital tax, so that:
- If profit tax exceeds capital tax, capital tax is effectively neutralised; and
- If profit tax is low or zero, capital tax (subject to minimum tax rules) becomes the binding burden.
The practical importance of capital tax therefore depends heavily on the company’s profitability relative to its equity.
How does the minimum tax in Vaud work for companies?
Companies that operate a business in Vaud are subject to an impôt minimum calculated on gross receipts and invested capital. For capital companies and cooperatives, the minimum tax is calculated at:
- 0.05 ‰ on gross receipts from wholesale trade;
- 0.14 ‰ on gross receipts from manufacturing; and
- 0.28 ‰ on other gross receipts (e.g. retail and services), plus
- 0.1 ‰ on invested capital, capped at the amount of minimum tax due on gross receipts.
The minimum tax replaces ordinary profit and capital tax where it is higher than the sum of those taxes. Newly created companies are exempt during their first two financial years, and financial hardship can justify relief in specific cases.
Is Vaud a high- or low-tax canton for companies?
Vaud is generally regarded as a mid-field canton for combined corporate income tax, with rates around the mid-teens in Lausanne. It is less expensive than traditional high-tax cantons but more expensive than classic low-tax cantons like Zug or Nidwalden. For many headquarters, tech and life-science companies, the combination of competitive rates, ecosystem and labour market makes Vaud an attractive location despite not being the absolute lowest-tax option in Switzerland.
Where can I check the current year’s Vaud rates and coefficients?
The most reliable sources are:
- The official Vaud tax administration pages on impôt sur le bénéfice, impôt sur le capital and impôt minimum, which set out the simple rates and interaction rules; and
- The municipal and cantonal coefficient tables (e.g. for Lausanne) and federal tax calculators or comparative studies that provide combined effective corporate income tax rates.
For material planning or structuring questions, it is advisable to confirm the applicable rates, coefficients and reliefs in writing, typically via an advance tax ruling.
Get Vaud rate & structuring advice (Sesch TaxRep GmbH) Vaud cantonal tax service