Switzerland

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

Taking into account the federal and cantonal tax, the effective rate is between 13% and 25% for companies subject to ordinary taxation, depending on the place of residence.

   
Tax rate on long-term capital gains In Switzerland, capital gains are generally taxed in the same way as ordinary income.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividends are taxed at the rate from 35% corresponding to a payment at the source. But this rate can be reduced to 15% in case from application from a fiscal agreement.
   
Tax rate on branches Branches are taxed to the corporate tax as the other companies.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate Individual income tax rates are generally progressive.
There are two scales of federal tax.
The first scale is applicable to unmarried taxpayers, the second to married taxpayers and non-separated.
In the first case (2002 figures), the taxable income is exempted under 9,600 CHF, beyond, the rate is progressive from 0,77% to 13,2% and shared out into 10 brackets. In the second case, the taxable income is exempted under 18,800 CHF, beyond, the rate is progressive from 1% to 13% and shared out into 14 brackets.

The maximum cantonal/municipal tax rates in major cities range between approx. 12.3 percent (canton of Zug) and 32.3 percent (canton of Jura). Within this range, and in certain municipalities above or below it, exist considerable variations.
   
Tax deductions or other allowances Personal deductions vary according to the status of each person (single people, bridegrooms, dependant child, etc.).
Medical care and insurance allowances are often deductible.



VAT rates

Standard rates 7.6%
   
Reduced rates 3.6% or 2.4%



Other important taxes


Name of tax
Rate
Tax on the financial products  
35% (except banks)  
Inheritance tax and donations  
6% for ancestors and descendants.  
Wealth taxes  
The rate varies according to each canton.  
Land taxes  
4%  


 

Accounting


Obligations and publications
The audit report must indicate that accounts are in accordance with the account books of the company and respect accounting standards.



Useful links
For further information, please contact the State Secretariat for Economic Affairs (SECO) or the Swiss Federal Tax Administration.

Last modified in 2006 - ongoing update
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