Switzerland has the distinction of being a country well demarcated in its social and political structures, with infrastructure and developed means of transport, modern roads, in short, with an excellent service provision, which makes paying taxes satisfactory to cancel.

Switzerland has an average business tax payment of around 15%, important data because the figure is below those reflected by most developed countries.

This medium or low percentage compared to the rest of the countries, allows companies incorporated in Switzerland to make future projections and allocate resources for new plans.

Federal, Cantonal and Municipal

In this Alpine country, corporate taxes have three levels to consider, the first type of tax that is applied throughout Switzerland is 8.5% as the maximum limit, better known as the federal tax. The corresponding cantonal tax, which varies depending on the residence of the company and marks a substantial difference and finally the tax that the municipalities could charge.

Who pays taxes?

Everyone cancels taxes in Switzerland regardless of the legal personality that they register, resident, worker, investor or companies, all have the obligation to cancel taxes, whether on savings or capital income.

The Taxes applied by Switzerland

-Tax on earned income in each canton of Switzerland
-Tax applicable to savings
-Tax on capital income
-Income tax

-The business capital tax is only charged at the cantonal and communal (and not federal) level. It is based on the company's assets, with rates that vary between 0.001% and 0.525%, depending on the company's place of residence in Switzerland.

-Corporate tax at the federal level is 8.5%. At the cantonal level, profits are taxed at rates that vary between 6% and 21%, depending on the individual cantons. It is known that the maximum that a company can pay for this concept is 24% in Geneva. In the cantons of Luzern, Nildwalden and Obwalden it is between 12 and 13%. Consequently, the effective corporate tax usually ranges between 12% and 24%.

-The VAT in Switzerland is an indirect tax or a tax on consumption, and applies to all goods and services imported, produced and sold in Switzerland. The value added tax is one of the lowest in the developed world.

It has 3 different sections, and the general rate is only 8%. Companies must pay customs duties with a standard import VAT of 8% for foreign imports.

A Swiss company must register for VAT if the annual VAT turnover is greater than approximately US $ 99,000 (or CHF 100,000).

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