|
Taxable Incomes in Switzerland |
|
|
Tax calculations in Switzerland are based on three different levels: federal, cantonal and communal. The variations in tax rates largely depend on which level you are being taxed. However, there are general bases you can refer to when calculating tax duties. For instance, capital gains of companies incorporated and/or managed in Switzerland are taxable on all three levels while capital gains derived from the sale of shares of a non-resident company to a Swiss subsidiary are not taxable, with the exception of the subsidiary being the owner of a real estate property in Switzerland. In which case, the capital gain has become taxable. On the other hand, the profits of a subsidiary of a Swiss company located abroad are not taxable, including the sale of shares of said subsidiary in a foreign country. Interests in loan payments made by a resident or non-resident branch to its main Swiss company are also non-taxable.
Although Cantons are given the sovereignty to impose their own taxes, the federal authorities still have the power to regulate the imposed taxes and control foreign trade. Stamp duties are one such example where their imposition is solely controlled by the federal government. Rates of stamp duties are dependent on the value of shares, bonds and insurance premiums being taxed. A 1% stamp duty is imposed on shares valued at over 250,000 Swiss Francs. In cases where shares are transferred to a Swiss company, a 0.15% stamp duty is imposed and 0.3% to shares transferred to non-resident companies. Regular bonds have a higher stamp duty than bonds issued by banks, with the former levied at 0.12% and the latter at 0.06%. A one-time stamp duty is likewise levied on insurance premiums at 5% and life insurance premiums at 2.5%.
Taxation in Switzerland differs in many ways from those levied in the United States and United Kingdom but it actually proves to be beneficial in the long run especially for offshore companies established within its jurisdiction.
|
|
Secure Order
Sales
