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.

Corporate tax reforms

To ensure the international acceptance of Swiss corporate tax law with lasting effect, at the end of 2019 several regimes that are no longer internationally recognized were abolished. To guarantee the continued attractiveness of the economic location nonetheless, the abolition of the regimes was accompanied by the reduction of corporate income tax rates, as well as by an array of possible deductions, with an emphasis on R&D and innovation.

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