Taxation

Business Capital Gains Tax (CGT)

Taxation

For companies, there is no specific Capital Gains Tax (CGT) at federal level. Gains on the sale of assets are taxed as ordinary income and it doesn’t matter how long the assets have been held.

CGT can be payable by individuals on profits made from the sale of Swiss real estate, but is only applied at cantonal level, and the rules vary considerably. This tax is known as Immovable Property Gains Tax. The rate of tax is dependent on the length of time the property has been owned and in which canton it is located. The general rule is the shorter the period of ownership, the higher the CGT liability. Some cantons have abolished the tax on real estate, but where it is still levied, rates vary between 0.8% and 3.3%.

CGT is not levied at federal or cantonal levels on the proceeds from the sale of movable private assets such as paintings and securities, and generally speaking, there is no CGT on stocks and bonds.

This article is an extract from Personal Business Tax Guide , dated 4th January 2011, for the latest version please click here .

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