Company Tax in Geneva: Rates and Tax Planning for 2026

You run a Sàrl (LLC) or an SA (limited company) in Geneva. Here is everything you need to know about your tax burden — real rates, deadlines, and legal tax planning.

The taxes a company pays in Geneva

A company based in Geneva is subject to three levels of taxation:

1. IFD — Direct Federal Tax (federal level)
2. ICC — Cantonal and Communal Tax (Geneva level)
3. Capital tax (a cantonal feature)

Profit tax in Geneva in 2026

Combined effective rate

Geneva significantly reduced its rates following the RFFA reform (2020). The combined effective rate for a standard SME:

This rate accounts for the abolition of the Communal Business Tax (TPC) in early 2024. It applies to the company's net profit, after deducting all expenses (salaries, rent, depreciation, interest, etc.).

How Geneva compares to other cantons

Geneva remains competitive against Zurich, but it can't match the central cantons. For an SME with premises and employees in Geneva, the difference rarely justifies relocating.

The capital tax

On top of the profit tax, companies pay an annual tax on their equity capital (shareholders' equity).

In Geneva:

• Rate: roughly 4.0‰ of taxable equity capital (after deductions). Reduced to 0.01‰ for the portion attributable to qualifying participations and patents.
• Deductible from the profit tax (if profit > 0)

On equity capital of CHF 200,000: capital tax ≈ CHF 800/year (before being offset against the profit tax). This amount stays modest for most SMEs.

Expenses deductible from taxable profit

Anything that is a genuine business expense is deductible:

Fully deductible:

• Salaries (including the director's own — provided it is in line with the market)
• Rent and operating costs
• Depreciation (at the rates accepted by the cantonal tax authority (AFC))
• Travel and entertainment expenses (within reason)
• Insurance premiums
• Interest on business debt
• Employer social security contributions

Partially deductible or conditional:

• Vehicle costs (the private-use portion must be added back)
• Meals and entertainment expenses (supporting documents required)
• Donations (deductible up to 20% of net profit)

Not deductible:

• Fines and criminal penalties
• Hidden profit distributions
• Expenses unrelated to the business activity

Filing a company tax return in Geneva

Deadlines

Documents to prepare

• Certified balance sheet and income statement
• Notes to the accounts
• ICC return form (GeTaxPM.ge.ch)
• List of participations (if applicable)
• Tax-to-book reconciliation

The main legal tax-planning levers

1. The director's pension (LPP) buy-in

If you are an employee of your own company, LPP pension buy-ins are deductible personally — not from the company's tax bill. But indirectly, a higher salary (which makes those buy-ins possible) reduces the company's taxable profit.

2. Accelerated depreciation

The AFC allows declining-balance depreciation rates on equipment and office furniture. An investment made near year-end can significantly reduce the year's taxable profit.

3. Permitted provisions

Provisions for doubtful debts (5% on Swiss receivables, 10% on foreign receivables) and for warranties on sales are accepted for tax purposes.

4. Timing your income

If your company is growing, deferring some invoicing to the following year can spread out the tax burden. To be reviewed case by case with your advisor.

What Klear Conseils does for your tax return

• Closing the books and preparing the annual balance sheet
• Completing the ICC and IFD returns
• Optimising deductions and depreciation
• Tracking deadlines and liaising with the AFC
• Handling reminders and tax assessment notices

Further reading: salary or dividend · deemed cash benefits · depreciation and provisions · the annual financial close · loss carryforward · the capital tax in Geneva · entertainment expenses