Non-profit status

Associations are recognised as non-profit organisations if their activities are mainly directed towards improving the welfare of third parties and do not serve the members’ own benefit. Upon application, non-profit associations may request tax exemption from the cantonal tax authorities. Self-help organisations, professional associations or sports and leisure clubs are not “non-profit” as defined by fiscal legislation. The Zewo quality seal for charity organisations is awarded only to associations with a charitable purpose.

Executive committee compensation and expenses / Model expense regulation (vitamin B)

Tax Exemption (vitamin B)

Question

How can our association be exempted from tax?

Answer

As a rule, there is no "automatic" tax exemption for associations. Applications for tax-exemption based on the association's non-profit status must be submitted to the cantonal tax administrations. These will also provide information on the relevant conditions and accept written applications for tax-exemption. The articles of association, foundation protocol, annual financial statements and other documents concerning the association's activities must be enclosed with the application. The articles of association should provide information on the charitable, social, cultural, etc. purpose of the association. The association's purpose must not exclusively benefit its own members (no self-help organisations) and the committee members must, as a rule, perform their role on an unpaid basis.

Upon the dissolution of the association, the liquidation proceeds must go to another tax-exempt association. Tax-exemption does not rule out a possible obligation to pay VAT!

See the work aid "Tax exemption for associations".

Non-profit status

Tax exemption: How does this work?

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Answer