The Swiss Holding

Despite the removal of the holding company privilege on 1 January 2020, Switzerland remains an attractive location for holding companies and mixed companies.

There is a tax reduction for profits distributed by domestic and foreign corporations and cooperatives to corporations that are taxable in Switzerland (the so-called participation deduction). The profit tax of a corporation is reduced in the ratio of the net income from the participation rights to the total net profit if the following conditions are met:

1. shareholding of at least 10% or market value of at least CHF 1 million.

2. holding period of the participation at least 1 year.

Please note: Foreign groups of individuals without a legal entity cannot claim the participation deduction!