If You Think You Get Companies, Then This Might Change Your Mind

What Advantages You Should Know About Swiss Company Formation

Having a Swiss company is a great solution for the many investors who want to manage the majority of their shares of other companies, particularly when they are resident for tax purposes. There are so many countries in Europe that are providing excellent prospects for holding companies and Switzerland is certainly the country that offers the best tax benefits for this sector. The laws of some particular cantons offer tax benefits for the Swiss company formation and in order for you to be qualified for the status of holding in a canton, it is necessary that the investment in foreign companies represent around 2/3 of the assets or total revenues.

There are lots of important advantages of getting a Swiss company in the beneficial tax regime and this is around 8 percent in total. Regarding the dividends which are received by subsidiaries that come from the Swiss company, you have to watch the double taxation treaties available. Various treaties are applying a rate of 15 percent but Switzerland has made an agreement with the European Union to ensure that the dividends given or paid by a subsidiary of the Swiss holding company won’t be made accountable for taxation in several circumstances. This would let Switzerland be in a better position of obtaining dividends from the European Union countries without withholding tax.

When you would opt for company formation in Switzerland, you need to know that the cantons and the federal authorities do recognize that favorable treatment. The Swiss holding companies need to have around 20 percent or CHF 2 million of the share capital of different companies and they would pay that reduced tax on the dividends that they obtain. There is a tax reduction because of the relationship of the gross profit and the net dividend income. Know that the deduction on the equity is guaranteed both at the cantonal and the federal level. This would lead to almost no federal taxes on the holding companies.

Also, you should know that the cantons are exempting the Swiss holding companies form all the income taxes and this creates a holding privilege. Because of this, the holding company is not dependent on the capital investment deduction. This offers a result that all dividends as well as profits from the sale get exempted from tax payment.

When you are interested about going for Swiss company formation, then you may contact a specialist on this matter. From a specialist, you will get to know the different benefits that you can get of holding a company in Switzerland. Also, you will surely get full support and you will be able to customize advance if you are interested about opening a Swiss holding company. If you are able to obtain the right information that you require, then you can get a better knowledge on what must be done and how you can benefit from this investment.

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