Legal Persons

Since 2003, the canton of Glarus has been lowering corporate taxes step by step: by 2010 they fell from 19.5 to an effective rate of only 14.6 percent (on average). That makes the tax burden quite low in an inter-cantonal and international comparison – similar to Ireland (14.1 percent) or Singapore (15.7 percent), which are considered very attractive from a tax point of view around the world.

Because the canton of Glarus defines taxes as a deductible expense, the maximum income tax rate (federal, cantonal, township) for ordinarily taxed companies is, at about 16.5 percent, clearly lower than the summed rate of about 19.5 percent. In a comparison of 17 cantons, Glarus came in 6th place:

Grafik BAK Basel

The federal government, the canton and the township tax income; the canton and township also levy a capital tax and the church a church tax. The cantonal rates in detail:

  • Net profit is taxed at 9 percent (simple tax).
  • Equity capital is taxed at two-tenths of a percent (simple tax).
  • Gains on real estate are taxed at 3 to 39 percent. The rate is higher if a property is held for a short time and lower if it is held for a long time.
  • Holding companies pay only a capital tax of 0.05 per mill.
  • Management or domiciliary companies pay only a capital tax of 0.05 per mill.