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.
In June 2016, the Swiss parliament passed the final corporate tax reform package meant to strengthen Switzerland as a competitive business location for foreign companies or entrepreneurs. The tax reform plan (CTR III) includes several tax reform measures related to the federal and cantonal tax laws.
The Swiss VAT system is mostly in accordance with the European VAT Directive; however there are some important differences that need to be addressed, especially when it comes to foreign suppliers of goods and services
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.
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.
The types of taxes currently existing in Switzerland can be divided into three major categories: federal taxes, cantonal taxes and municipal taxes. In order to avoid overlapping taxation, Switzerland has concluded double taxation agreements with most industrialized countries, to protect foreign investors from double taxation.