|
Corporate Taxation in Switzerland |
|
|
Switzerland is governed by a federal system and as such there is no fixed standard for taxation. The federal government allows each canton to impose their own tax levies and so therefore, tax rates also vary in each Canton. While there are taxes exclusively imposed by the federal government, others are simultaneously imposed on a federal, communal and cantonal level.
Corporate income taxes are imposed on profits of companies incorporated in Switzerland or those companies managed from within its regions; and likewise to profits of non-resident companies. These taxes are required on the federal, cantonal and communal levels. As a rule, incorporated companies are assessed on their worldwide profit with exceptions from real estate, permanent establishments and enterprises profits. Tax rates depend on which canton your business is situated. But among all 26 cantons, Zug and Fribourg are said to be the best cantons to establish your businesses in. Zug in particular is the widely-chosen location to establish an offshore company because of its favorable tax rate ranging only from 14% to 17%.
Corporate income tax levied by the federal government to incorporated companies is at a basic rate of 3.63% per annum, whose percentage increases depending on the standing of profits against net worth. The maximum percentage for federal taxes is 9.8%. Cantonal taxes on the other hand, are approximated between 17% to 35% p.a. also based on the relationship of the profits against net worth. Communal taxes are usually equivalent to a small percentage of the cantonal tax. Foreign companies with subsidiaries in Switzerland are taxed the same way. Non-resident companies are assessed based on profits gained from enterprises, real estate, interests on loans secured within the jurisdiction of Switzerland; and permanent establishments.
Taxes are duties we are all compelled to pay. The key in maximizing your offshore company, particularly in Switzerland is to choose the best Canton for your business.
|
|
Secure Order
Sales
