The Essential Things Regarding 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 specific cantons offer permanent tax benefits for Swiss company formation and for you to be able to qualify for the status of holding in a canton, it is required that the investments in the foreign companies represent about 2/3 of the total revenues or assets.
There are various important benefits of having a company in Switzerland in the beneficial tax regime and this is about 8 percent overall. Regarding the dividends which are received by subsidiaries that come from the Swiss company, you have to watch the double taxation treaties available. So many of the treaties are applying a rate of 15 percent but Switzerland signed a treaty with the EU so that the dividends which paid by a subsidiary of the Swiss holding company will not be made responsible for taxation in various countries. This would let Switzerland be in a better position of obtaining dividends from the European Union countries without withholding tax.
When you go for company formation in Switzerland, you should know that the cantons and the federal authorities definitely recognize the favorable treatment. Swiss holding companies need to have about 20 percent or a CHF 2 millions of the share capital of the other companies and they are going to pay a reduced tax on the dividends which they get. The tax reduction is because of the relationship between the net dividend income and the gross profit. You must know that the deduction on the equity is ensured both at the federal and the cantonal level. Such result would consist in nearly no federal taxes on holding companies.
Moreover, you must know that the cantons exempt the Swiss holding companies from the income taxes and such 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.
If you are interested on going for Swiss company formation, you may call a specialist on such matter. With the help of the specialist, then you can surely know the many advantages that you will be able to get when holding a company in Switzerland. Also, you can ensure that you will get full support and also customized advance if you are interested about opening a Swiss holding company. When you get the right information that you need, then you can have a better understanding on what should be done and how you will be able to take advantage of such investment.
Source: swiss company formation