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Reducing corporate and individual tax burdens, tax avoidance? – a Swiss solution?
Switzerland offers various attractive products to international companies to reduce their tax burden by European standards, the tax burden in Switzerland is low - both for companies and individuals.
This is an unique opportunity for international companies who interpret the current financial crisis as a strategic challenge for further international expansion of their business.
It is well known that Switzerland is an excellent location for business investments. Proof are the hundreds of international companies who have chosen Switzerland as an ideal location to support their further economic growth, either as a headquarter, as service/financial center but also as R&D and production site.
| Tax model | Effective tax rate on income |
| Ordinary | 11.8-24.8% * |
| Mixed | 8-15% * |
| Principal | 5-9% * |
| Holding | 0% |
| Tax holidays | - 100% * |
| * differs between cantons |
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There are different reasons why those companies have chosen Switzerland: Skilled workforce, liberal working law, first-class infrastructure, enterprise-friendly and multilingual environment, good image, beautiful landscape, the legendary three S’s – “Security-Safety-Stability” and we shouldn’t forget about taxes. The OECD wanted to earmark Switzerland as a tax haven and had put us on a grey list. However, did you know that Switzerland has an extremely important export industry which generates almost two thirds of its GDP. It is quite the opposite: the comfortable and attractive Swiss tax system is to a large extent responsible that such industry could develop in Switzerland over the last 100 years. The debate about whether or not Switzerland is a tax haven or whether it is favoring tax avoidance becomes therefore quite irrational.
The future for Swiss corporate tax law looks even more attractive. The Swiss government proposed abolition of the one procent issuance stamp tax on debt and equity contribution, abolition of 35% withholding tax on intra group interest, unlimited loss carry-forward, loss transfer within a group of companies including losses suffered in foreign participations, permission to the canton to abolish annual capital tax on corporation's equity and others.
Switzerland has not only low taxes in terms of European standards, but also attractive products to reduce the tax burden in some cases to a rate below 5% if specific tax structures are chosen or tax exemptions apply. The latter are valid in certain designated areas in Switzerland only.
Are you interested to set up a company in Switzerland or in company formation in general then don't hesitate and contact the independant specialist - Lemur-Scouting GmbH
| Switzerland a tax haven? |
| 650 US companies have subsidiaries in Switzerland. They give (in+) directly work to 190'000 people. 560 Swiss companies have subsidiaries in the US and they give work to 500'000 people there - Is Switzerland a tax haven or a solution for foreign companies to increase their competitiveness facing global markets |
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