Switzerland is located in Central Europe and has a territory of 41,285 square kilometers. Switzerland borders Germany, Austria, Liechtenstein, Italy and France. The capital city of Switzerland is Bern, the location of key government institutions. Switzerland has a population of 8,5 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - From 11% up to 21% depending on the canton where a company is registered.Tax returns are filed on an annual basis. Advance income tax payments can be made on an annual basis or in installments
- Dividend withholding tax - 35%
- Interest withholding tax - 0% if commercial loans are provided by foreign companies or parent companies
- Royalties withholding tax - 0%
- Capital gains tax - From 11% up to 21% depending on the canton where a company is registered
- VAT - Standard tax rate 7,7% or reduced rates from 2,5% up to 3,7% or tax exempt. Tax returns are filed on a monthly, quarterly or a biannual basis
- Personal income tax - from 0% up to 52%.
The following are the most common types of companies to incorporate a company in Switzerland as:
- Limited liability company (Gesellschaft mit beschränkter Haftung - GmbH)
- Public limited company (Aktiengesellschaft - AG)
- General partnership (Kollektivgesellschaft - KG)
- Limited partnership (Kommanditgesellschaft - KG)
- Partnership limited by shares (Kommanditgesellschaft auf Aktien)
- Civil law company (Gesellschaft bürgerlichen Rechts - GbR)
- European company (Societas Europaea)
- Branch office (Zweigniederlassung).
Official currency of Switzerland is Swiss franc (CHF).
Growth of GDP in 2018 amounted to around 1,7% and USD 705.5 billion.
Switzerland has a modern market economy with low unemployment level, highly qualified work force and one of the highest GDPs per capita. Swiss economy is based on a highly developed service sector, whose main field are financial and banking services. In Switzerland high-tech industry sector is also developed. Economic and political stability, transparent legal and justice systems, well-developed infrastructure, effective capital markets and a quite low corporate income tax rate make Swiss economy one of the most competitive.