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.
The calculation of the tax rates in Switzerland is based on the net income of the taxpayer. Like in most other countries, there are several tax deductions that can be made when a tax declaration is filed. These will reduce the taxable income and consequently the amount of tax that needs to be paid.
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 most common types of companies established by foreign entrepreneurs in Switzerland are GmbH and AG. Both types of companies have their advantages and disadvantages, therefore the following information might be very useful for those interested in opening a company in Switzerland, to help them make a decision.
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.