Swiss Taxation Service
Hotline: 86-755-82143348, Email: anitayao@citilinkia.com
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, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to anitayao@citilinkia.com