Capital tax
Capital tax is a cantonal and municipal tax on a legal entity’s equity; it is levied regardless of profit, and the federal government does not levy it.
Definition
The tax base is the paid-in capital together with open reserves and taxed hidden reserves. Because it falls due in loss-making years too, it is a fixed burden for capital-intensive or loss-making companies.
Several cantons credit the profit tax against the capital tax, so that only the higher amount is owed. That credit differs from canton to canton and is one reason a location comparison should not stop at the profit tax rate.
What the software must be able to do
For the software this means only one thing: equity has to be correctly structured on the balance sheet — paid-in capital, reserves, retained profit. Whoever keeps everything in one account has to split it by hand for the tax return.
Checked Aug 2026
More terms under Company taxes: Anticipatory tax (Verrechnungssteuer) Capital contribution principle Direct federal tax Dividend Profit tax