The effective tax rate is approximately 15%. This rate is significantly lower than the income tax rate that would apply to the same profits if they were earned as income from self-employment (10% AVS + approximately 43% income tax for a taxpayer domiciled in Geneva). It is precisely this difference that creates the tax advantage, which, however, applies only to the undistributed portion of the profit. Income tax is generally not eliminated, but deferred until a future distribution. The entrepreneur therefore has more money available to reinvest!