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Dividend Tax Relief
In order to avoid double taxation, Switzerland has signed treaties with the European Union and some other jurisdictions to prevent double taxation, allowing subsidiaries of Swiss holding companies to receive tax-free dividends. The holding company is entitled to federal tax relief on the dividends received from its subsidiaries, which is a portion of the net income.
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Strategic Geographic Location
Situated in Western Europe, Switzerland provides the best logistics environment for important commercial activities. Being centrally located, Switzerland serves as an excellent entry point for businesses into the European market. It is also suitable for market testing new products or services before expanding into other European countries.
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Circumventing EU Tax Regulations
Switzerland is not a member of the European Union, but rather a member of the European Free Trade Association. With these agreements, most market access barriers have been eliminated, including free movement of people, and duty-free cross-border trade. Compared to EU businesses, Swiss enterprises can easily enter the European market without facing the strict EU tax regulations.
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Financial Stability
Switzerland's financial stability is mainly attributed to strong purchasing power, low inflation, a robust currency, and stable public finances. All these factors make Switzerland an excellent investment environment that promotes economic prosperity and stability. Swiss banks have a strong capital base, enabling them to better withstand financial crises. Considering all these factors, Switzerland is one of the most suitable places in Europe and even globally for entrepreneurship, expanding into the European market, and investment.
Tax Info
Enter Dynamic Page- General CIT Rate
- Federal corporate income tax: after-tax profit of 8.5% (pre-tax profit of 7.83%). State and local CIT is added to federal CIT, resulting in an overall effective tax rate between 11.9% and 21.0%, depending on the company's domicile in Switzerland.
- CIT Return Due Date
- The due date varies from canton to canton (usually between six and nine months after the close of the business year).
- CIT Payment Due Date
- The due date varies from canton to canton.
- CIT Estimated Payment Due Date
- Federal CIT is usually due by 31 March of the following tax period. At the cantonal level, the due dates vary from canton to canton.
- Resident Withholding Tax (Dividend/Interest/Royalty)
- 0%-35% / 0%-35% / 0
- Non-Resident Withholding Tax (Dividend/Interest/Royalty)
- 0%-35% / 0%-35% / 0
- General VAT Rate
- 8.1%
- General Capital Gain Tax Rate
- The effective tax rate (ETR) depends on the company’s location of corporate residency in Switzerland. The ETR of a company resident at the capital cities of the Swiss cantons varies between 11.9% and 20.5%. Exceptions to be considered relate to the participation relief and capital gains on real estate.
- Composite Effective Average Tax Rate
- 17.1%
- Composite Effective Marginal Tax Rate
- 10.4%
Administrative Regions
- AG - Aargau
- AI - Appenzell Innerrhoden
- AR - Appenzell Ausserrhoden
- BE - canton of Bern
- BL - Basel-Landschaft
- BS - Basel-Stadt
- FR - Canton of Fribourg
- GE - Canton of Geneva
- GL - Glarus
- GR - Graubünden
- JU - Canton of Jura
- LU - Canton of Lucerne
- NE - Canton of Neuchâtel
- NW - Nidwalden
- OW - Obwalden
- SG - Canton of St. Gallen
- SH - Canton of Schaffhausen
- SO - Canton of Solothurn
- SZ - Schwyz
- TG - Thurgau
- TI - Ticino
- UR - Uri
- VD - Canton of Vaud
- VS - Canton of Valais
- ZG - Canton of Zug
- ZH - canton of Zürich
Belonging Jurisdiction
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CH - Switzerland
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