Tax revenue from commodity trading

Read the PDF edition (2 pages)

The tax revenue that commodity trading brings to the canton derives from two taxes. The first is the tax on the profits of legal entities, of which trading provides a significant share of cantonal receipts, varying from year to year and concentrated on a few large houses; the second is the tax on the income and wealth of natural persons, paid by traders and executives whose high remuneration makes them major taxpayers.¹ The tax reform of 2020, described in Chapter VI, altered the first: the abolition of the privileged statuses raised the rate applicable to traders while lowering that of other companies, with a net effect that the cantonal administration has tracked year after year.

This revenue is volatile. A year of record profits, such as 2022, produces exceptional receipts, which a year of downturn causes to fall sharply. The canton, which has experienced these swings, has an interest in not basing its structural expenditure on the good years. Budget debates in Geneva therefore regularly turn on the prudence to be observed. Commodity trading is for the cantonal finances what it is for the financial centre: a source of prosperity whose volatility is part of its nature.

Notes

Geneva Solutions, “Swiss banks are turning their backs on commodity trading”, 2020: “International trade in agricultural commodities, energy and metals is estimated to account for up to 17% of the Geneva Canton’s tax revenues”; Le Temps, 22 November 2016, quoting Stéphane Graber (STSA): 20 per cent of the tax revenue from legal entities in Geneva; État de Genève and BCGE, press release of 5 November 2025: trading and wholesale trade 17.6 per cent of Geneva GDP in 2022. ↩

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 →

Tax revenue from commodity trading

Notes

Setting up or expanding in Switzerland?