Minimum taxes - in these cantons you pay taxes for non-active companies

Fri, 04.12.2020, 09:00

Do you have a company that you actually no longer need because you have changed your professional orientation, or your company is no longer operational? Out of convenience, you prefer to let your company exist and you want to keep all your options open because you might need it again one day?

What may seem obvious at first glance is rarely the best idea at second glance. In particular, you should consider all the costs of keeping your company in business. In addition to administrative costs (bank charges, costs for bookkeeping and financial statements, expenses for the tax return, etc.) and the possibly idle invested capital, the annual taxes that are incurred in many cantons should not be neglected.
 
Even if your company does not generate a single franc in turnover and your balance sheet total is modest, you will still pay company taxes every year in many cantons.
 
Most cantons have a so-called minimum tax. These minimum taxes are set individually by each canton. In some cases, the amounts charged may also fluctuate from year to year. For example, the canton of St. Gallen has reduced the minimum tax from around CHF 850 in 2019 to just over CHF 300 per year from 2020. In the canton of Aargau, people currently (2020) pay around CHF 850 minimum tax per year, and in the canton of Appenzell-Ausserrhoden CHF 900. The central Swiss cantons of Obwalden, Nidwalden, Uri and Lucerne charge a minimum tax of CHF 500 per year. The other cantons with a minimum tax rate are in a similar range and charge a minimum tax of between CHF 100 and CHF 900 per year. The easiest way to find out the effective minimum tax for your canton is to use the relevant tax calculator on the website of your cantonal tax office.
 
Only the cantons of Berne, Glarus, Zurich, Neuchâtel, Geneva and Jura do not have a minimum tax. However, even in the cantons without a minimum tax, there is often no way around taxes: If, for example, a limited liability company in the city of Zurich has simply paid in its share capital of CHF 20,000, but is currently making no turnover and certainly no profit, it will pay an annual capital tax of CHF 35 on the paid-in capital. And above all: she must prepare a financial statement and submit a tax return every year.
 
Nevertheless: Various cantons with a minimum tax have temporary relief for newly founded companies, which, depending on the canton, provide for a waiver of the minimum tax for the first two to a maximum of five years. After this grace period, however, the obligation to pay the minimum tax then takes effect.
 
Even if the tax amounts mentioned are not too high at first glance, in many cases it is not worthwhile simply allowing a company that is no longer needed to continue to exist. In many cases, liquidation or deletion will be cheaper. The example of the canton of St. Gallen, with its comparatively low minimum tax, shows that after just two to three years, the total costs of maintaining your company are significantly higher than the costs of liquidation. In addition, the costs of liquidation are often only postponed, as sooner or later liquidation will still be necessary. Liquidation enables you to draw a clean line and make a clean sweep of your business. And if the entrepreneurial spirit does grab you again, a new company can be founded quickly and easily.

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