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.
Each state has the sovereign right to levy taxes, which means that it has to deal with certain tax issues that concern not only its own citizens, but also citizens that are non-residents who occasionally or temporarily earn income in the respective state.
The Head of the Department of Finance, Heinz Tännler, supports the proposals by the Federal Steering Committee for the new tax regulation 2017. He feels encouraged regarding the cornerstones for Zug’s corporate tax law reform.
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.
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.
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.