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.
In June 2016, the Swiss parliament passed the final corporate tax reform package meant to strengthen Switzerland as a competitive business location for foreign companies or entrepreneurs. The tax reform plan (CTR III) includes several tax reform measures related to the federal and cantonal tax laws. These measures may affect especially multinational enterprises that are currently doing business in Switzerland.
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.
The choice of location for a business has become extremely important in today’s competitive economy. Switzerland offers many unique advantages for entrepreneurs willing to invest in the country, on economical, political and social level. Here are the most important reasons why you should consider investing in Switzerland, a small, yet highly developed country.
Switzerland is offering one of the most competitive business environments, not only on European level, but also globally. This is a consequence of the business – friendly strategy adopted by the Swiss government. Although many important global corporations have their headquarters in Switzerland, most companies incorporated in Switzerland belong to small businesses. Therefore, it’s only natural that small businesses benefit from various tax incentives, available through dedicated government programs.
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.
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.
