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Taxation is an important issue when choosing a legal form. The main difference is between the partnership and the corporation. Below we will highlight these differences to give you a brief overview.


Taxation of Coperations (GmbH & AG)

1. Companies

- The company makes a profit
- The profit is taxed at a corporate tax rate
- On the Company's equity capital taxes are paid
- A separate tax return is filled in for the company

->  Distribution of dividend


2.  (Shareholders)

- The shareholders receive the dividends
- The shareholders have to declare their dividends as capital gains
- If a shareholder owns more than 10% of the company shares, only 50% (depending on canton) of dividends must be filed for income tax.


=> If the company does not distribute any dividends, the tax rate is initially lower than that of a partnership company
=> When distributing dividends the problem of double taxation arises


Taxation of Partnership Companies (Sole Proprietorship & Collective Partnership)

1. Companies

- The company makes a profit
- The profit must be taxed at a personal tax rate of the owner
- One has to pay the wealth tax on the companies assets
- No separate tax return filling is required for the company

-> The owner is eligible for all the profits

2. Owner

- The owner can access all the profits without further taxation


We will be happy to explain any details regarding taxation in a personal consultation.