Tax
Got a company? See how much tax you can save
If your company closes the year with sizeable profits, part of that profit is yours to direct: it can go to tax, or — legally — build your pension. On high incomes, the difference runs into tens of thousands of francs.
The principle, before the tricks: saving tax lawfully isn't about hiding profit — it's about using the instruments the law provides. The most powerful one, for someone running a company, is the occupational pension: the contributions paid reduce taxable profit, and the money stays yours.
Why the pension is the most effective tax lever
Company profit is taxed. But the pension contributions the company pays are a deductible expense: they lower taxable profit and, with it, the tax. Unlike other expenses, here the money doesn't really leave — it goes into your 2nd pillar, where it grows in a tax-privileged environment.
In Ticino the corporate profit tax sits, depending on the municipality, around 15–16% (federal, cantonal and communal combined). Every franc of profit moved into the pension, and deducted, is a franc that escapes that rate.
The concrete levers
A more generous pension plan
The legal minimum BVG covers only a salary band (up to about CHF 90,720, with an entry threshold around CHF 22,680). Above those minimums you can set up a supplementary plan: higher, company-paid, deductible contributions that build your retirement capital far faster.
1e plans, for high incomes
On the salary portion above the upper BVG limit (indicatively over CHF 132,000 a year) you can use a 1e plan: you choose the investment strategy for your pension capital yourself, and the contributions stay deductible. It's the instrument designed precisely for owners and executives on high salaries.
Voluntary BVG buy-ins
If your 2nd pillar has gaps (years when you paid in less), you can fill them with voluntary buy-ins, deductible from your taxable income. Often it's the simplest, most immediate move. One limit to remember: after a buy-in, the capital can't be withdrawn as a lump sum for 3 years.
The third pillar (3a)
Don't forget pillar 3a, deductible up to about CHF 7,200 a year for those who already have a pension fund: small next to the instruments above, but it's pure tax saving, year after year.
Example. Your company closes with CHF 50,000 extra profit. You direct part of it to your pension via a more generous plan (or a 1e on the high salary band): those deductible contributions lower taxable profit. With profit tax around 15–16%, the company saves roughly CHF 7,500–8,000 in tax. But the real point is elsewhere: those 50,000 didn't go to tax — they're in your pension, where they grow, and on withdrawal they'll be taxed at a reduced rate, separate from the rest of your income.
Where the pension ends and the fiduciary begins
The pension is the lever a consultant like us can pull directly. But a company's tax picture is broader: depreciation, provisions, R&D relief, handling of participations and dividends. That's the domain of the fiduciary and tax adviser — and we work alongside them, not in their place: you have a single direction, each plays their part.
A timing rule that makes the difference
Almost all these levers must be activated before the end of the tax year: a BVG buy-in or a new plan decided in December affects the current year; decided in January, it doesn't. Those who plan ahead save; those who remember at year-end closing, usually don't.
Frequently asked questions
Does the pension really save my company tax?
Yes: the pension contributions the company pays are a deductible expense and reduce taxable profit. On top of that, the capital goes into your pension instead of to tax, and will grow in a tax-privileged environment.
What is a 1e plan and who is it for?
It's a pension plan for the high salary band (indicatively over CHF 132,000 a year), where you choose the investment strategy yourself. It suits owners, executives and self-employed people on high salaries who want to deduct more and manage their own capital.
Do I have to change fiduciary to optimise my tax?
No. The fiduciary stays your reference for the accounts and the tax return. We handle the pension lever and coordinate with them: no overlap, a single direction.
Sizeable profits and too much tax?
Let's see together how much you can move, legally, from the "tax" column to the "your pension" column — with the numbers of your situation, not in the abstract.
Talk to GROVA →General information only; this is not tax advice and does not replace personalised advice. Rates, thresholds and amounts (BVG, 1e, 3a, profit tax) change over time and by municipality: choices should be based on your specific situation, in coordination with your fiduciary.