taxes

Gift Taxation in Switzerland

Gift tax is a specific kind of taxation existing in Switzerland. This kind of taxes usually levy on gifts received by the swiss residents and can vary from each Cantone. Luckily, not all gifts are taxable in Switzerland. Gift taxes were imposed by the government in order for heirs to stop avoiding taxation, in case they receive an immovable property or great amount as an inheritance. The gift tax almost applies to every Canton except for Schwyz and Lucerne, these Cantons are tax exempted under the swiss legislation. But many locals believe that a gift tax is unfair and as for many countries such a definition is don’t even exist.

Do educational institutions need to register for VAT in Switzerland and what is the process?

All countries in the EU and Switzerland, are part of the VAT legislation requirements. And many other countries around the world have similar VAT systems. According to Swiss legislation, foreign companies need to be registered for VAT, but some companies can be part of an exception in case of services that they provide.

Russian Federation and the Grand Duchy of Luxembourg have changed the double taxation rules

Recently Russian Federation and the Grand Duchy of Luxembourg have signed protocol regarding the amendments in the double taxation rules. This Protocol was negotiated following a request from the Russian Federation due to a change in its conventional policy regarding withholding taxes on dividends and interest.

Tax deductions in Switzerland

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.