Philanthropy and taxation

Read the PDF edition (2 pages)

Taxation encourages philanthropy. Donations to institutions exempt from tax on account of their public-service or charitable purpose are deductible from taxable income, within certain limits, for direct federal tax and for cantonal taxes.¹ The institutions themselves are exempt from taxes on profit and capital, while successions and gifts in their favour benefit from cantonal exemptions.

Geneva is home to a significant number of charitable foundations, many of which are linked to families who are clients of the financial centre or to international organisations.² The creation and management of these foundations constitute an important advisory activity for banks, lawyers and fiduciaries. They require sound governance, rigorous accounting and compliance with the conditions for exemption, which exclude any consideration flowing back to the donors.

Part F will return to the role of philanthropy in International Geneva. It suffices here to note that taxation is a lever for philanthropic engagement, and that the wealth planning of large fortunes often incorporates a philanthropic dimension, in combination with family succession.

Notes

Art. 33a of the Federal Act on Direct Federal Taxation (DFTA; SR 642.11; lexfind.ch): deduction of voluntary payments in cash and in the form of other assets to charitable legal entities having their seat in Switzerland, “up to 20% of income less deductions”, provided the donations amount to at least CHF 100 per year; same regime for donations to the Confederation, the cantons, the communes and their establishments. ↩
Cantonal supervisory authority for foundations and pension institutions (ASFIP Genève, asfip-ge.ch): an authority independent in substantive, legal and financial terms, based on Art. 84 of the Civil Code and Art. 61 of the Federal Act on Occupational Pensions (OPA), entirely self-financed through fees levied on the supervised institutions. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.

English

Contact

Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →

Philanthropy and taxation

Notes

Setting up or expanding in Switzerland?