The case

It has been disputed where the main tax domicile of A Ltd. was for the years 2015 to 2019. A Ltd. was founded in Zurich in 2005 and moved its registered office to Zug in 2014, also maintaining a branch office in Germany.

Source: State and municipal taxes 2015-2019 (Zurich) – judgement of 8 April 2025 (9C_547/2023)

The commentary

The Zurich Cantonal Tax Office had decided that A Ltd.’s main tax domicile was still in the Canton of Zurich as the managing director’s place of residence was in Zurich. This decision was confirmed by both the Tax Appeal Court and the Administrative Court of the Canton of Zurich.

With reference to its ruling BGer 9C_73/2024 of 26 February 2025, the Federal Supreme Court stated that the managing director’s place of residence could not be used as a subsidiary tax domicile if it was not clear (….) where the main business decisions were made and the main business was conducted. If, taking into account all the circumstances, it cannot be established to the required standard of proof that the company’s decisions are made primarily at a different location, unlimited tax liability outside the company’s canton of domicile is ruled out. The taxpayer’s appeal is upheld.

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