Swiss Patent Box

Since 2020, companies domiciled in Switzerland have the opportunity to benefit from tax advantages in connection with the so-called patent box or with taxes on R&D expenses.

What is at the core of the Swiss patent box: Upon a taxable person's or company's request, the net profit resulting from patents or income from patents, respectively, is taken into account in the ratio of qualifying R&D expenses to total R&D expenses per patent for the calculation of the taxable net profit. This may result in a reduction in income of up to 90%, entailing corresponding tax advantages. In order for patents to be taken into consideration for the box, they must relate to research and development activities (nexus approach) and, in accordance with OECD guidelines, they must be novel, useful and non-obvious.

Additionally, up to 150% of the explicit commercially justified R&D expenses incurred, directly or indirectly via third parties, by a taxable person or company in Switzerland may be deemed deductible. In Switzerland, the comptence lies with the cantons, which may grant their approval upon request.

You will find in-depth background information relating to patent boxes in Switzerland on our information platform www.patent-box.ch jointly offered with Balmer-Etienne (trust, examination, advice).