taxes

Switzerland's corporate tax system includes federal and cantonal taxes. The total corporate tax rate includes federal income tax, cantonal income tax, and capital taxes. 

Federal Taxation

Legal entities for tax purposes are divided into two categories: 

1. Corporations (including stock corporations, partnerships limited by shares, limited liability companies), cooperatives, and SICAFs. 
2. Associations, foundations, legal entities, and collective investment schemes with direct real estate ownership.

In recent years, many companies have sought to maximize their profits by setting up headquarters in countries like Switzerland. This strategy is popular due to Switzerland's low taxation and favorable economic policies, making it an attractive destination for foreign investors. Continue reading to learn more reasons why Switzerland is an ideal location for foreign businesses.

Businesses operating or aspiring to operate in Switzerland must stay updated about its evolving culture, regulations, and economy. Understanding these changes allows you to adapt your business strategy proactively and succeed in the Swiss market. Read to learn some of the recent shifts in taxation, immigration policies, industry regulations, and consumer behavior

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.

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.

Dear Clients,

With these few lines, we request your precious time to remind you of the main legislative changes that await us from January 2020 moving forward.

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.