Where is your holding company?

The taxpayer is a holding company whose registered office is located in canton A, where it incurs minimal infrastructure costs (rent, salaries, office expenses, etc.). It has three directors, two of whom live in canton B. One of these two directors has individual signing authority and works full-time for an operating subsidiary, which has its own premises and staff. The taxpayer does not provide the tax authorities in canton B with any rental agreements, service contracts, expense statements, bank statements, or other proof of the presence of its corporate bodies at its registered office (non-exhaustive list). The taxpayer merely states that it has dealings with a wealth manager and a crypto company, both of whom are located there. It also points out that it accounts for board fees.

The tax authorities at the operational company's registered office consider that the effective management of the taxpayer, a pure holding company, is located at the operational company's registered office, while its (the holding company's) registered office is a mere letterbox.

Both the cantonal courts of first and second instance find in favour of the cantonal tax authority in B.

Federal judges rule in favour of Canton B.

The judgment is in German. It concerns a case from Zurich (canton B) involving the canton of Zug (canton A).

Federal Supreme Court, judgment 9C_321/2025 of 23 October 2025