Fiduciaire

Tax privileges in Switzerland: 

Tax privileges in Switzerland An overview Laurent Tschopp lic. oec. HSG Certified Swiss Tax Consultant

Tax privileges: 

Tax privileges For legal entities Types of legal entities "Normal" taxation Tax privileged companies For individuals Lump sum taxation

Tax privileges for companies: 

Tax privileges for companies Types of legal entities Joint stock companies (SA, AG) Limited liability companies (Sàrl, GmbH) Partnerships limited by shares (sociétés en commandite par actions, Aktienkommanditgesellschaften) Cooperative societies (coopératives, Genossenschaften) Associations (associations, Vereine) Foundations (fondations, Stiftungen)

"Normal" taxation: 

"Normal" taxation Income and capital tax rate (Canton of Valais) Income tax The overall tax rate amounts from 16.5% to 27.5% of the net profit Any tax expense is a tax deductible expense; On a pre-tax base the rate amounts therefore from 14.2% to 21.6% Capital tax The overall tax rate on the net equity amounts from 0.3% to 0.5%

Tax privileged companies: 

Tax privileged companies Types of entities Generally : Joint stock companies, limited liability companies or permanent establishment of a foreign legal entity Types of tax privileged companies Holding companies Domiciliary companies Swiss base companies Service or international headquarter companies

Tax privileged companies: 

Tax privileged companies Holding companies Companies holding substantial investments in the capital of other companies Income = essentially dividend income Exempted from the cantonal and communal taxes on profit Dividend income and capital gains are exempted from the federal income tax Reduced capital tax rate

Tax privileged companies: 

Tax privileged companies Domiciliary companies Entities whose entire operations take place abroad Neither staff, nor location in Switzerland Generally, cantonal and communal taxes on profit are levied on a reduced base which depends on the administrative activities in Switzerland (e.g. on 10-20% of the net profit) Reduced capital tax

Tax privileged companies: 

Tax privileged companies Swiss base companies Operations take mainly (generally min. 80%) place abroad May have staff and locations in Switzerland Profits from trading abroad are generally taxed on a reduced base which depends on the administrative activities in Switzerland (e.g. on 10-30% of the net profit) Profits from trading within Switzerland is taxed at the normal rate Reduced capital tax

Tax privileged companies: 

Tax privileged companies Service and international headquarters companies Entities providing group coordination, management services Taxable profit is deemed to be a percentage (generally min. 5%) of the total expenses alternatively to generally 1/6 of the local payroll costs Normal capital tax

Tax privileges for individuals: 

Tax privileges for individuals Lump sum taxation (1) = lump-sum tax based on a deemed taxable income, in function of the living expenses The tax due is the height of: the tax calculated on certain specific items of actual income, e.g. Swiss source investment income the tax due on five time the rental expenses; a negotiated tax amount on a deemed taxable income Includes both income and wealth tax

Tax privileges for individuales: 

Lump sum taxation (2) The taxpayer should: not have been a Swiss resident in the past 10 years not follow a lucrative activity in Switzerland be of foreign nationality request the lump-sum taxation and fill in a special tax return Tax privileges for individuales