Patent Box

The patent box is a tax instrument in Switzerland specifically designed to enhance the innovation and competitiveness of companies. With the introduction of the new corporate tax reform law (STAF), the patent box has been implemented at the federal level and in the cantons.

What is the Patent Box?

The patent box allows companies to treat income from qualified patents and similar rights with tax benefits. This means that a portion of the profits from these rights can be taxed at a reduced rate. The aim is to create incentives for research and development (R&D) and to promote the establishment of innovative companies in Switzerland.

What are the advantages of the Patent Box?

1. Tax relief: Companies can tax a portion of their profits from intellectual property at a lower rate.
2. Promotion of innovation: By reducing the tax burden, more capital is freed up for investments in R&D.
3. Attractiveness of location: The patent box makes Switzerland an attractive location for companies focused on innovation and technological developments.

Requirements and Qualifications

To benefit from the patent box, companies must meet certain requirements:

1. Qualified rights: The privileged income must come from patents or comparable rights developed in the course of R&D activities.
2. Proof of R&D activities: Companies must be able to document that the relevant R&D activities were carried out in Switzerland.
3. Calculation of tax-privileged income: The tax advantage is determined by a differentiated calculation method that ensures only the relevant income is privileged.