Malaysia Hotline: +603- 2141 8908
After
incorporating a company in Switzerland, it is necessary to declare the company
taxation to Switzerland tax bureau, there are different types of taxes in
Switzerland, you had better turn to a professional agent to be your assistance
in the taxation issues. Here we give our clients some basic information for the
taxations in Switzerland as follows.
Corporate tax in Switzerland
Swedish
corporations are taxed with both a federal tax and cantonal or communal tax.
The federal income tax is levied at 8,5%. Cantonal corporate income tax varies,
but on average its rate is around 13%. Taking in consideration both cantonal
and federal taxes the combined tax is between 12% and 22% (depending on the
residency area).
VAT in Switzerland
It is a
known fact that Switzerland has the lowest VAT in Europe, rating 8% since 2011.
Furthermore, reductions are available for certain supplies and services such as
food, medicine, newspapers etc. with VAT rates of 2,5% and for hotel
accommodations with VAT rate of 3.8%.
VAT to be refunded in Switzerland
The
Government of Switzerland offers the possibility for companies that pay VAT to
obtain refunds. VAT refunds are obtained only once a year and not all foreign
companies are entitled to it. Basically every profit made in Switzerland is VAT
taxable. However the amount can be recovered by submitting an application
signed by the business owner to the Tax Authorities of Switzerland. The minimum
amount for which the refund is asked is 500 CHF. The application should be
based on original invoices and a VAT certificate and in case it is accepted the
refund is processed and made within 6 to 9 months.
Dividend tax in Switzerland
Dividend
withholding tax paid by companies in Switzerland is 35%. The payment should be
made within 30 days after the dividend is made. Companies with the country of
residence that has a treaty with Switzerland are granted reductions. For
example, according to the EU parent/subsidiary treaty, there is no withholding
tax on dividends when 25% of the shares are owned by a Swiss shareholder for
more than a year.
Taxes rates applied on other
payments
Only
certain interests are taxed with 35% at the federal level such as the ones
derived from deposits with Swiss banks, bonds and bond-like loans.
The
royalties are not subject to taxation in Switzerland.
There is
also no tax on the technical service fees. The Swiss branch remittances are not
taxed.
Incentives for foreign investors
in Switzerland
Foreign
investors often choose Switzerland as a country to invest in due to the
competitive economy, low taxes and welcoming environment. Also the country's
geographical position and natural resources make Switzerland a prolific country
to start a business. The government offers favorable conditions to both Swiss
and foreign investors. However measures are taken to encourage foreign
investment, including grants and loans for businesses activating in research
and development, culture, information, health and communication.
Accounting Service for Swiss
business
Switzerland
is an attractive destination for foreign entrepreneurs mostly because the
stable and transparent economical system. However companies need to fulfill
conditions in order to function legally and financially speaking, there are
certain complex procedures in need of the attention of an accountant.
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my