Business-friendly conditions
Attractive tax package
Companies based in the canton of Aargau benefit from an attractive tax rate, paying profit tax of 15.1% in line with the OECD minimum tax. Companies can also reduce their tax expenditure even further by investing in research and development.
At a glance
Taxes in the canton of Aargau
Here is an overview of the tax system in the canton of Aargau, as well as the tax deductions available for companies.
Startups
Newly founded companies and startups are exempt from minimum taxation for five years.
Minimum tax
Corporations and cooperatives pay minimum tax in accordance with Article 88 StG (simple cantonal tax)
- CHF 500 for corporations
- CHF 100 for cooperatives
Corporate tax
The canton of Aargau offers companies attractive benefits with regard to tax:
- For corporations, the canton of Aargau differentiates between taxes on profits and taxes on capital. Profit tax is deducted from capital tax. A company becomes liable for tax on the date of its entry in the commercial register.
- For companies with profits of more than CHF 250,000, the effective profit tax minus tax expenses is a standard 15.1% .
- Capital taxes amount to 0.75 per mille of taxable equity capital.
- The canton of Aargau does not impose property or trade tax on commercial property in Switzerland or abroad, and allows provisions for research and development (R&D) of up to CHF 1 million.
- Immediate write-offs can be claimed for movable fixed assets.
- Business-related expenses, such as interest on debt, corporate taxes and fees or charges, can be deducted from profits.
- Companies may be entitled to a flat-rate provision of up to one third of the value of their inventory.
- Business losses can be carried forward for up to seven years and offset against short-term profits.
Value added tax
Companies based abroad must clarify whether they are liable for VAT in Switzerland.
As a basic rule, if a company provides services in Switzerland, it must pay Swiss VAT. Companies that generate an annual taxable turnover of less than CHF 100,000 within Switzerland are exempt from VAT.
To register for VAT and for more information, please contact the federal government.
Innovation is rewarded
Tax deductions for research and development
To ensure that Aargau remains an attractive business location for companies, the promotion of research and development (R&D) is a top priority.
- Companies can deduct up to 50% of their R&D expenses in excess of their business-related R&D expenses. The same applies to 80% of R&D expenses by third parties.
- Profits from patents and similar rights can be taxed in a patent box at a reduced rate of up to 90%.
- The taxable profit for cantonal and municipal tax can be reduced by up to 70% for the additional R&D deduction and/or patent box taxation. This can reduce the effective profit tax burden to up to 10.1%.
Contact
Achieving our goals together
Do you have questions about your future tax situation in the canton of Aargau or are you looking for a specialist at the cantonal tax office to discuss specific concerns? We’ll be happy to help.
Anja Borchart & Urs Rothlin
