The taxes in Switzerland can be divided into three major categories: federal taxes, cantonal taxes and municipal taxes. In order to avoid overlapping taxation, Switzerland has concluded double taxation agreements with most industrialized countries, to protect foreign investors from double taxation.
Since the establishment of the Bilateral Agreements between Switzerland and the European Union, citizens from the EU residing in Switzerland for profit – making purposes, have a legal claim to the access to the Swiss labor market, given that all the required legal conditions are met. The agreements also apply to the states that are members of the European Free Trade Association.
The Swiss tax system is characterized by various levels of direct taxation: direct federal tax, cantonal taxes and municipal taxes. The tax legislation in the individual Swiss cantons is often very different from one canton to another.
A Swiss holding company is usually founded in the form of a GmbH or AG. This type of company holds and manages long – term financial investments and participations in other corporations. A holding company is the perfect solution for investors that need to manage the majority of the shares from other companies. Switzerland is currently one of the countries that offer the best tax benefits for foreign investors.
The cantonal laws and tax rates in Switzerland may vary considerably from one canton to another, which is why it’s important to carefully consider where you establish a company in Switzerland.
Double taxation refers to the fact that two countries collect simultaneously taxes on the same company. This situation often arises when companies have subsidiaries or branches in various countries.
Subsidiaries are legal entities with capital that is partially or totally owned by foreign companies. However, the management of the subsidiary is not conditioned by the foreign capital, and the entity is able to handle business contracts, hire employees or issue and transfer shares.
Switzerland is often considered one of the best locations for incorporating a company. It is a prestigious country with a relatively low tax rate and, above all, a credible reputation for the quality and security of its business environment.
Last year, Switzerland introduced a new law, the "blockchain law". The implementation of this law will follow two stages: the first which already occured on the 1st of February, and the other to eventuate in August. Invoked on the 1st of February were reforms on company law. In the second phase in August, the State will put into effect upgrades of the financial market infrastructure. These will allow Switzerland to have a properly managed cryptocurrency industry where all actors are fully informed of the opportunities & risks associated.
Recently, Switzerland adopted a new DLT Regulations which sets the country as a leader in FinTech, Blockchain, DLT Technologies and other related programs. The new regulations will enter into force starting from this year.