The calculation of the tax rates in Switzerland is based on the net income of the taxpayer. Like in most other European countries, there are several tax deductions that can be made when a tax declaration is filed in Switzerland. These will reduce the taxable income and consequently the value of tax that needs to be paid diminishes significantly.
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.
Over the past few years, more and more companies have started to strategise ways by which they can escape giving their hard-earned profits to governments. This is the reason why many major global firms decide to set up their headquaters in low taxing jurisdictions like Switzerland. Switzerland is one of the most welcoming investment destinations for foreign investors due to its low taxation, a favourable economic legislature, among many other advantages.
