An attractive tax regime

A favorable tax environment for companies

Switzerland has a modern system of taxation designed to respond to the needs of the economy.  Consistent with the country’s federal structure, taxes are imposed at three levels in Switzerland:  the federal level, and the cantonal and municipal levels.  The combined tax rate is much lower compared with other industrialized countries.  Companies which establish operations in the Greater Geneva Bern area and create jobs can take advantage of complete or partial tax relief under certain conditions.

Moderate corporate tax rates

At the federal level, the corporate tax rate is only 8.5% of net profits.  In addition, taxes on profits must be paid to the canton and the municipality, and the rates vary depending on the location of the company.  The fiscal competition between the cantons has contributed to making Switzerland a

country with low tax rates and supportive tax authorities.  The tax administration authorities are true partners to companies and the current trend is moving toward a decrease in corporate tax rates.  Individual tax rates also vary from one canton to another.

A competitive tax regime at an international level

In international comparisons, Switzerland has some of the most favorable tax conditions.  The cantons of the Greater Geneva Bern area have put in place some particularly interesting framework conditions which attract numerous companies from around the world each year.  These companies benefit not only from low tax rates, but also from the double taxation treaties entered into by Switzerland with all of its principal commercial partners, such as the U.S., China, Germany, France and Italy.

Toward corporate tax reforms

Switzerland is currently working on reforms to its corporate tax system.  The third reform on corporate taxes (RIE III) which will enter into effect in January 2019 at the earliest, will put in place a tax system that is designed to be competitive at the international level and that also complies with European and OECD regulations.  The RIE III will further reinforce Switzerland’s attractiveness over the long term thanks to favorable tax rates (starting at approximately 13% depending on the canton) and the availability of an array of possible deductions.

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