Direct federal tax
Direct federal tax is the federal tax on individuals’ income and on legal entities’ net profit; for corporations a uniform rate of 8.5 per cent of net profit applies.
Definition
Because the rate is calculated on profit after tax, it corresponds to an effective burden of around 7.83 per cent of profit before tax. Together with canton and municipality this yields the total profit tax burden.
For individuals the tariff is progressive and the range of deductions wider. For a sole proprietorship, direct federal tax is therefore part of the private tax return and not a tax of the business.
The numbers
- 8.5%
- rate on the net profit of legal entities Art. 68 DBG
Where to read it
What the software must be able to do
No check of its own in the software — but a reason to calculate the tax provision at year end rather than estimate it. Programs with a closing assistant carry that step.
Checked Aug 2026
More terms under Company taxes: Anticipatory tax (Verrechnungssteuer) Capital contribution principle Capital tax Dividend Profit tax