Switzerland has become a preferred destination for investors due to its taxation system, geographic and political position, low inflation, low unemployment rate as well as its competitive business environment.
Taxes in Switzerland are levied at federal, cantonal and local level. Dividends and interests are a subject of the withholding tax, at a rate of 35%, however the withholding tax can be deducted in full, under certain conditions.
The Corporate Tax Reform III has been approved by the Swiss Parliament. This tax reform was created in order to preserve Switzerland’s attractiveness as a location for multinational companies that want to take advantage of a more relaxed taxation.
Switzerland is offering one of the most competitive business environments, not only on European level, but also globally. This is a consequence of the business – friendly strategy adopted by the Swiss government.
The United States of America and the Swiss Confederation have signed a convention regarding the avoidance of double taxation concerning income taxes, which became effective on January 1 1998.