Corporate Taxes
Stable political conditions, security, one of the most liberal legal framework in Europe and a healthy tax competition between cantons results in a permanently low tax burden and make the tax system extremely attractive. The tax system is shaped in accordance with the federal structure of the country. Corporations are taxed on federal, cantonal and municipality levels. A further speciality is that taxes can be deducted as charges in the books. Companies are taxed in Switzerland where it is based or where it carries out its business activities.
Corporate taxes are levied on income and captial. At federal level, income is taxed at an effective flat rate of 7.83%. In addition at cantonal level, income taxes varies strongly among different cantons. For ordinary companies those effective tax rates can vary between 5% to 17% which bring the overal effective tax rate on 11.8-25.8%. Different taxating structures exist (holding, mixed and principal company) which can substabtially reduce the tax burden even further. In certain regions even tax incentive might apply. Levied capital taxes vary too between the cantons. They are low with 0.001-0.525%.
A company with its headquarters in Switzerland is subject to taxes on both net income and capital. For each fiscal period, which corresponds to the financial year, the company files a single tax declaration, which serves for federal, cantonal and communal taxes. The company is taxed by the cantonal tax authorities.