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How is corporation tax calculated?

The tax office levies corporation tax on the income of legal entities. What counts as income and how it is calculated is determined by the provisions of the Corporation Tax Act and the Income Tax Act.

Corporation tax is 15% of the taxable income for a calendar year. The tax office levies an additional 5.5% solidarity surcharge on the calculated tax liability.

The tax office determines the amount of tax. You will then receive a notice requesting payment or information on a credit payment.

Corporation tax is a joint tax. The revenue flows jointly to the federal government and the federal states.


The corporation must pay tax on the profit it generates itself. At the same time, it can distribute this profit to its shareholders. The profit distribution is subject to income tax for these shareholders.

In order to reduce double taxation, distributions are only taxed at a rate of 25% for the shareholder (flat-rate withholding tax). Alternatively, as a shareholder you can apply in your income tax return for 60% of the distribution to be taxed at your personal income tax rate instead (partial income method).

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