The calculation of the tax rates in Switzerland is based on the net income of the taxpayer. Like in most other countries, there are several tax deductions that can be made when a tax declaration is filed. These will reduce the taxable income and consequently the amount of tax that needs to be paid.
The most common types of companies established by foreign entrepreneurs in Switzerland are GmbH and AG. Both types of companies have their advantages and disadvantages, therefore the following information might be very useful for those interested in opening a company in Switzerland, to help them make a decision.
The Swiss VAT system is mostly in accordance with the European VAT Directive; however there are some important differences that need to be addressed, especially when it comes to foreign suppliers of goods and services. Therefore, it is strongly recommended for them to have extensive knowledge regarding the Swiss VAT legislation, before starting any commercial activities in Switzerland.
Switzerland has decided to permanently quit joining the European Union, formally withdrawing a request made in this regard, sitting in the drawers of EU’s officials buried for 24 years.
Swiss Foreign Minister, Didier Burkhalter, forwarded a response to officials in Brussels to consider the application "as withdrawn" in June 2016. The event took place just a week before the referendum that decided the fate of Britain in the European Union, concluded as what is now known as “Brexit”.
The Corporate Tax Reform III has been approved by the Swiss Parliament. This tax reform was created in order to preserve Switzerland’s attractiveness as a location for multinational companies that want to take advantage of a more relaxed taxation. Due to the potential referendums that are in order and implementation processes of the new reform, the new measurements are expected to enter into force somewhere before the beginning of 2019.
Doing business in Switzerland is a great opportunity for many entrepreneurs and companies interested in investing their money into profitable and advantageous business ventures. Here are some important facts about the legislation, taxation system and overall business environment in Switzerland.
Buying properties in Switzerland, especially a house or a commercial property is not as easy as is sounds, as the Swiss real estate market is highly regulated. Owning a house in Switzerland is not something as usual. More than 60% of the people living in Switzerland usually rent their residence. Property ownership is higher in rural areas and lower in larger cities such as Basel, Zurich or Geneva, due to the constant growth in urban population over the last 50 years and the high demand of businesses looking for properties to establish a registered office in Switzerland.
