Taxation of foreign companies in Switzerland
Tax rates and important details about the Swiss tax system for foreign companies and entrepreneurs interested in doing business or incorporating in Switzerland.
Tax rates and important details about the Swiss tax system for foreign companies and entrepreneurs interested in doing business or incorporating in Switzerland.
The most important provisions of the Switzerland - Germany double tax treaty for German investors and entrepreneurs doing business in Switzerland.
General provisions of the Switzerland - United States tax treaty regarding the taxation of individuals, companies, partnerships and other types of legal entities doing business in Switzerland.
Requirements for companies and businesses that are obligated to register for VAT and UID number in Switzerland. Business identification in Switzerland.
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 cost of living in Switzerland is among the highest in the world, with the main cities Zurich and Geneva being named in the top 15 most expensive cities in the world in a 2019 study. On the other hand, Swiss salaries and the living standards are also among the highest in the world, which is the main reason why you should consider Switzerland a perfect location for work and living a quality life.
A management company is best suited to meet the needs of international groups or corporations. The management company operates mainly outside Switzerland, although it may receive part of the income from Switzerland.
Mixed companies are corporations that have most of their business activity abroad and any business activity conducted in Switzerland is considered only of secondary nature. Both Swiss and foreign shareholders may have a dominant influence on a mixed company, which means that foreign citizens are allowed to open mixed companies in Switzerland.
The Swiss federal Council and the Government of the United Arab Emirates decided to conclude a Convention in regard to the avoidance of double taxation with respect to taxes on income. The UAE is one of Switzerland’s most important economic partners in the Middle East, therefore a double taxation convention is meant to enhance bilateral economic relations between the two countries.
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.