Any company with a registered office in Switzerland is liable for Swiss tax, while foreign companies abroad are liable for limited taxation if they hold real estate in Switzerland.
Switzerland is a logistical hub with competitive tax rates, making it an attractive country to run a business in.
Switzerland is an attractive destination for foreign business owners and investors, thanks to its low tax rates. The federal Swiss corporate tax rate is a flat rate of 8.5%, but additional cantonal and municipal rates can vary considerably. The maximum corporate tax rate including all federal, cantonal, and communal taxes is between 11.9% and 21.0%. However, a range of allowances and deductions means you’ll usually pay much less.
Tax avoidance and evasion in Switzerland
Switzerland has long been described as a tax haven. In fact, Switzerland was ranked as the second worst global facilitator for tax allowance in 2022. However, recent years have seen changes in the tax system. In 2019, Switzerland voted in a corporate tax reform which meant that the same tax rules would apply to all companies. This also meant the abolition of tax privileges that certain types of companies, including multinationals, formerly enjoyed. The country also reduced its financial secrecy by 17% in 2022.
Tax advice in Switzerland
Considering how complicated the Swiss income tax system can be, and the importance of self-employed expats getting their tax returns right, it’s advisable to seek advice from an accountant. Many services also specialize in helping internationals with the ins and outs of their returns.
Not only can a professional save you time and stress, but they can also make sure you’re taking full advantage of the available tax allowances, and can save you from a hefty fine if you get it wrong.
