Switzerland protects the investor by joining double taxation agreements

Foster Swiss, as an international financial consultant, has the function of supporting its clients from the first moment they decide to invest in an extraterritorial jurisdiction and accompanying them throughout the process, accompaniment that they achieve thanks to the experience and international presence in more than 40 entities today in day.

Among its services, Foster Swiss highlights advice on everything related to international private tax planning, important information that every investor must keep in mind when setting up a company.

Switzerland is an entity that offers many opportunities and facilities to open bank accounts and create offshore companies, being one of the main attributes and the most valued by investors who choose this country as a place to invest the principle of bank secrecy.

Just a few years ago, Switzerland joined the list of countries that took the OECD's recommendations and standards and put them into practice in order to avoid being classified as a non-collaborating country and to protect the reputation that Switzerland has so far achieved as a suitable country for the investment.

Among the standards adopted is the introduction of the automatic exchange of information, CRS, which is nothing more than identifying and collecting information from the data of people who maintain financial accounts in a jurisdiction other than their jurisdiction of tax residence.

Dividend and Interest Payments

Switzerland signed agreements for the exchange of information on tax matters very significant since many of the income received by governments comes from taxes, in this sense and in order to avoid double taxation, Switzerland establishes as a measure to avoid tax evasion that Dividend payments and interest payments are considered as a unilateral tax deduction for double taxation through the tax credit system.

A double taxation exemption is allowed for dividends received from abroad by group companies, income received from businesses or permanent establishments abroad and for real estate located outside of Switzerland.

In other cases, double taxation is generally mitigated by the deduction method: taxes paid in a foreign country will be deductible to the extent that such income would be taxed in Switzerland.

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