TAX ADVICE IN SWITZERLAND

What taxes do you have to pay in Switzerland?

The tax system corresponds to the federal structure of Switzerland. In Switzerland, taxation is carried out at 3 levels: municipal, federal and cantonal, and different rates are set in each canton.

Value Added Tax – The general rate of value added tax is 7.7%, but in some cases a reduced rate applies. A reduced rate of 2.5% applies to food products, pharmaceuticals, mass media and books and goods classified as basic necessities, there is no tax on cultural, educational, health products and services. Value added tax must be paid if the company’s annual turnover exceeds 100,000 Swiss francs.

Corporate income tax – The Swiss federal corporate tax rate is 8.5%, but additional cantonal and municipal rates can vary significantly. The maximum corporate tax rate, including all federal, cantonal and municipal taxes, is between 11.9% and 21.6%. However, a number of allowances and deductions mean you usually pay much less.

Real estate tax – in the case of buying a house or other real estate, you must pay a tax on the transfer of ownership, or pay a tax on the transfer of ownership. Such a tax will vary from 1 to 3% of the market value of the real estate object. If you own real estate for living, you must also pay real estate tax, which is from 0.2 to 0.3 of the market value, depending on the value of such property.

Taxes in Switzerland for individuals

• The federal personal income tax rate is 11.5%. The cantonal and municipal rate varies by canton and is added to the federal rate, resulting in a total personal income tax rate of 22.5% to 45%.
• There is no property tax at the federal level, but it is set at the level of cantons and communes. The tax rate varies by canton and ranges from 0.15% to 1.01%.
• There is also no inheritance tax rate at the federal level, but it is set at the cantonal level. Direct descendants are exempt from inheritance tax in most cantons.

Agreements on avoidance of double taxation

To avoid double taxation or receiving income in two countries, Switzerland has Double Taxation Agreements (DTA). Agreements have been concluded with more than 80 countries, including Great Britain, the United States, Canada and most of Europe. The effect for non-residents from participating countries is that they can receive a partial or full refund of the tax withheld by the Swiss authorities. If tax is withheld at source, the difference can be claimed by non-residents from the Swiss tax authorities.

A tax lawyer (lawyer) in Switzerland will advise you on choosing the optimal tax system for business in Switzerland regarding

• value-added tax in Switzerland VAT (value-added tax),
• corporate income tax (CIT – corporate income tax),
• personal income tax (PIT – personal income tax)
• social deduction from employees (ZUS)
• local tax in Switzerland
• dividend tax in Switzerland
• excise duty in Switzerland

Tax optimization/exit tax/ tax planning (Switzerland)

Among the most common tax optimization mechanisms in Switzerland are:

• Creation of a group of companies that includes funds in Luxembourg, Holland, Liechtenstein and other jurisdictions, depending on the profile of your business and its features.
• Expansion of your business to favorable tax residences (Hong Kong, Singapore, Slovakia)
• The system of refinancing foreign assets

What is included in the duties of a tax lawyer of Yuk Prykhodko and partners:

• Consulting on taxes in Switzerland
• Calculation of taxes in Switzerland
• Preparation of tax documents in Switzerland
• Tax representation in Switzerland
• Settlement of tax disputes in Switzerland

What is the cost of a tax consultation in Switzerland? Leave your phone number and our specialists will contact you.

Representation in the tax authorities in Switzerland by Yuk Prykhodko and partners – includes consulting, preparation of all necessary documentation of relations with the tax authorities of Switzerland and the EU on tax issues.