Update to the AFC guide on tax exemptions

This update to the Guidelines on Tax Exemptions is part of the measures taken by the Canton of Geneva to support and structure the cantonal philanthropic sector.

The canton intends to facilitate partnerships between public authorities, foundations, donors and non-profit organisations by improving processes and support. Concrete actions are planned: simplification of administrative procedures, training and networking of stakeholders, support for social innovation and promotion of transparency. The overall objective of these actions is to increase the effectiveness and impact of philanthropic initiatives to better meet the social, cultural and environmental needs of the canton.

Regarding the practice of the cantonal tax administration (AFC), this has been clarified on the following points in the Guide to Tax Exemptions :

• Compensation for members of an association committee or foundation board: the Guide to Tax Exemptions now specifies that «quantitatively extraordinary» and «qualitatively extraordinary» tasks performed by a member of the governing body may be compensated, in addition to attendance fees and expense reimbursements, up to a maximum of CHF 10,000 per year per member of the governing body, provided that it is appropriate and in the interest of the institution. For higher amounts, a ruling should be requested.

• Institutions that carry out activities partly or wholly abroad can also benefit from tax exemption. This exemption is conditional on the activity carried out abroad having, by the general standards of the population and Swiss values, a sufficiently strong interest for the Swiss public community to agree to forgo taxing profits and capital. While this point is not new (it was already accepted in the past that activities carried out abroad could be exempt), this reminder is important insofar as many institutions operate outside of Switzerland's borders.

• Support by entrepreneurial financing (e.g. loan) may be admissible as a form of support compatible with an exemption, provided that the principle of disinterestedness is respected.

These adjustments demonstrate the canton of Geneva's commitment to continue, in line with the recommendations of the Geneva Centre for Philanthropy at the University of Geneva (GCP), to support organisations working for the common good.

As a reminder, to be eligible for tax exemption on profit and capital, institutions with their headquarters in the canton of Geneva must, prior to taxation, request an exemption decision from the AFC.

Source image : https://www.ge.ch/actualite/geneve-precise-sa-pratique-soutenir-secteur-associatif-philanthropique-20-11-2025