Legal persons

In the case of a company limited by shares (‘société anonyme/Aktiengesellschaft’) and of a limited liability company (Sàrl/GmbH), there is a clear separation between the private sphere and the professional sphere, which is not the case with partnerships. Companies limited by shares and limited liability companies are taxed as businesses, whereas a shareholder and an associate are taxed as private individuals.

But this clear separation also brings with it a double economic tax liability. On the one hand, there is tax on the net profit of the company limited by shares, and on the other hand, the shareholder is subject to income tax on the dividends distributed.

The same is true for share capital. For companies limited by shares, tax is payable on the capital, and for shareholders, taxes on assets are payable in proportion to the share value.

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