corporate tax system

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. 
 

The Swiss government has gone the extra mile in leveraging low corporate tax rates as a competitive advantage. In Switzerland, corporate tax rates vary depending on the canton where you are operating your business.

On the 19th of May 2019, Swiss voters voted in favour of the Federal Act on Tax Reform and AHV Financing (TRAF)—confirming the corporate taxation reform. The main purpose of the reform is to bring tax legislation in line with international standards and to remove Switzerland from the EU “Grey List”, which it has been in since December 2017. This list includes states that are under EU control and have agreed to cooperate to improve the tax system.
 

Some of the most important administrative tasks that are required to successfully run a business in Switzerland, especially regarding the taxation of Swiss companies and corporate tax rates.

Learn more about accounting standards, reporting and the accounting system in Switzerland. Types of financial reports required by the Swiss Code of Obligations, applicable accounting standards and audit requirements for Swiss business structures.

The withholding tax in Switzerland is usually 35%, but under certain circumstances it can be considerably reduced and several tax exemptions are also granted. Find out more about the Swiss withholding tax for companies and foreign citizens, tax deductions and possible tax exemptions if certain criteria are met.

The corporate tax rate is collected in Switzerland from companies, based on their net income obtained from business activities during a fiscal year. 

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.