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Switzerland - TAXES ACCOUNTING |
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Corporate tax
Tax rate for resident companies |
Switzerland is a confederation of 26 cantons and taxes are levied at both the federal level and the cantonal/communal leval. As a result, no average corporate income tax exists. The federal corporate income tax is imposed at a flat rate of 8.5% of taxable income (maximum effective rate is 7.8%). Cantonal tax rates vary widely: the local tax burden varies between 8% and 25% of pretax income.
The total effective maximum rate burden ranges from 16% to 25%, depending on the canton in which the company is located.
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Taxe rate on long-term capital gains |
In Switzerland, capital gains are generally taxed in the same way as ordinary income.
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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.
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Tax rate on branches |
Branches are taxed to the corporate tax as the other companies.
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Income tax
Fiscal year |
The fiscal year begins on January 1st and ends on December 31st of the same year.
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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 unseparated.
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.
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Tax deductions or
other allowances |
Personal deductions vary according to the status of each person (single peaple, bridegrooms, dependant child, etc.).
Medical care and insurance allowances are often deductible.
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VAT rates
Standard rates |
Normal VAT rate is 7,6%, one of the lowest rates in Europe.
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Reduced rates |
There are 2 reduced rates: 2.4% on goods for personal consumption, newspapers and agricultural and pharmaceutical products; 3.6% on hotels. Certain goods and services (medical treatment, education) are completely exempt from VAT.
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Other important taxes
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Name of tax |
Rate |
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Tax on the financial products
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35% (except banks)
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Inheritance tax and donations
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6% for ancestrals and descendants.
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Wealth taxes
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The rate varies according to each canton.
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Land taxes
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4%
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Accounting
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Obligations and publications
The audit report must indicate that accounts are in accordance with the account books of the company and respect accounting standards.
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Last modified in
January 2003
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