Tax Exemption for Institutions in Service of the Public Good

Geneva has long offered an attractive tax framework designed to encourage the creation and ongoing success of institutions acting for the public benefit. This system enables such institutions to maximise their resources for the common good and allows Swiss donors to deduct their contributions from their taxable income or profit.

Understanding the conditions for this status and following good practice are essential in maintaining tax exemption over time and contributing sustainably to Geneva’s philanthropic ecosystem.

Key principles

1. 1. Exemption from direct tax (IFD and ICC)

Private-law institutions with their registered office in the Canton of Geneva may be exempt from cantonal and communal profit and capital taxes (ICC) as well as federal direct tax on profit (IFD) on the grounds of acting in the public benefit.

To obtain such exemption, the institution must demonstrate that it is pursuing a purpose exclusively and irrevocably in the public benefit, as defined by Article 9, para. 1, letter f of the Geneva Law on the Taxation of Legal Entities (LIPM) and Article 56, letter g of the Federal Law on Direct Federal Tax (LIFD).

Exemption from cantonal and communal profit and capital taxes (ICC) may also be extended to the supplementary property tax (IIC) levied on buildings located in Geneva, provided these are directly used for the purpose being pursued in the public benefit.

Each tax exemption request is examined both under the relevant tax legislation and considering each case’s specific circumstances.

2. Tax deductions on donations for donors

Swiss taxpayers donating to Swiss-based institutions working in the public interest with tax-exempt status may deduct their donations from their taxable income (or profit, for companies). A limit applies (usually up to 20% of taxable net income/profit).

3. Exemption from inheritance and gift duties        

In Geneva, gifts and bequests to institutions that are based in Switzerland and recognised as entities acting in the public benefit are exempt from inheritance and gift tax.

Procedure: How to obtain a tax exemption on grounds of public benefit?

The Cantonal Tax Administration (AFC) is the competent authority that reviews and grants tax-exempt status.

You'll need to provide the following documents:   

• The official form, “Tax Exemption Request – ICC and IFD for Associations and Foundations”, duly completed, dated, signed and accompanied by the required documents, including:
  • the statutes;
  • the latest annual financial statements (or a budget if newly constituted);
  • the most recent annual activity report (except for newly created foundations).

Duration and renewal

Tax exemption is generally granted for an indefinite period.

Where a limited-term exemption is granted, the institution is responsible for submitting a new application via the above procedure when the validity period expires.

In all cases, the institution must ensure that it continues to fulfil all cumulative conditions for tax exemption for acting in the public interest.