Some of the most important administrative tasks that are required to successfully run a business in Switzerland, especially regarding the taxation of Swiss companies and corporate tax rates.
The Swiss Federal Tax Administration has issued a circular letter containing guidelines for tax deductions related to the costs of equity incentives. Find out what these new regulations are and if they are applied by all Swiss cantons.
The corporate tax rate is collected in Switzerland from companies, based on their net income obtained from business activities during a fiscal year.
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