Swiss AG or GmBH what corporate tax they pay?

Discussion in 'Offshore Company formation' started by lostguy, Mar 29, 2018.

  1. lostguy

    lostguy Active Member Entrepreneur

    I was wondering what corporate TAX a Swiss AG or GmbH pay?

    If it depends on what cantone they are setup in please let me know what the lowest possible is?

    appreciate your answers Guys!
    auric and diablo like this.
  2. IAmNotTheTaxman

    IAmNotTheTaxman New Member

    Just from some basic research:

    Swiss National Corp Tax is 8.5% (Effective Rate of 7.8%)
    Local Tax Rate: Varies from ~12% to ~24% per Canton
    Branch Tax Rates: 8.5% (Effective Rate of 7.8%)

    Best Cantons are:
    Lucerne (12.32%)
    Nidwalden (12.66%)
    Obwalden (12.89%)
    diablo likes this.
  3. Amoled

    Amoled New Member

    the only thing I know is that lowest tax Kanton is Zug, it has the lowest tax rates of all Kantons and has still a good reputation, because it's Switzerland.
    auric likes this.
  4. Milky Moon

    Milky Moon Offshore Research & Development. Business Angel

    auric likes this.
  5. superman

    superman Member Entrepreneur

    it's not that easy.

    here some real and correct facts:
    the tax is in most cantons is still calculated on municipality level
    i can give you regarding this some hotspots: meggen LU (11.42%), wollerau SZ (12.45%), canton nidwalden (12.67%), baar zg (14.31%)

    great tax marketing that works as I see on above post. the most innovative canton, cheaper tax if profit below chf 100'000.
    town zug tax is a heigher then in the municipality baar ZG.
    if profit below 100K in baar zg is around 11.2%

    they come to this great idea to low the tax a few years ago and to get something of the tax cake, but the questions is when they will give up, too much loss and such strategy will hard work with that big canton.
    here the same meggen LU (11.42%) has cheaper tax then town Lucern (12.32%).

    since years stable low tax in the low tax municipalities.

    a new player on low tax, acting fast has already implemented IP Box solution. The time will show.

    but that's not all, now begin the tax deduction:
    this is a very wide area and I will only provide some key solutions. this is the point where you need help from a tax consultant.
    in case your company is a holding you can fall below 9%
    some canton provide IP Box solutions (oecd valid) and you pay on such profit -80% tax on canton and municipality as example in nidwalden
    various company setup exist
    you can get a tax ruling from tax office that is safe
    and and and...
  6. diablo

    diablo Banned Users Business Angel BANNED MEMBER

    can someone let me know what the exact corporate tax is in TOTAL for a company in ZUG ? for instant in Cyprus it is only 12,5% in total no other tax to be paid!
  7. lostman

    lostman Active Member Entrepreneur

    No one knows what the total corporate tax a company in Zug has to pay? what about Ticino in Switzerland?
  8. superman

    superman Member Entrepreneur

    If you don't trust my numbers, you can use the official tax calculators:

    Canton Zug: Steuerrechner fuer Kapitalgesellschaften
    Canton Schwyz: Steuerkalkulator juristische Personen
    Canton Lucern: Kapitalgesellschaften - Kanton Luzern
    Canton Ticino: Calcolatori - Cantone Ticino

    Federation tax: Kanton Zug · Steuerberechnung Juristische Personen

    Most of the calculators show tax % after tax, so be carefully when you compare.

    My previous numbers are what you for instant pay. There are many legal possibilities to lower this, but this depends on the business.

    Means you can have instant a little lower then in Cyprus in most of the municpalities of Canton Lucern and some of Canton Schwyz. If your yearly profit is below 100K then in Zug too.
    Martin Everson and Admin like this.
  9. lostman

    lostman Active Member Entrepreneur

    @superman I trust your posts they are very helpful, sorry for sounding negative! I just wanted to know the exact figures for tax payment a GmbH has to pay there.
  10. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    @lostman Superman just gave you a brilliant answer and even a second response with links to the sites where you can calculate it yourself.

    No pleasing some.
    Admin likes this.
  11. lostguy

    lostguy Active Member Entrepreneur

    Thanks Guys, this has been very helpful :)
  12. Admin

    Admin Forum Moderator The Forum Cleaner

    It seems it sums it all up.

    How much profits does a company need to make in order to consider Switzerland as a good place for relocation you think?
  13. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    If you have earn over 100k in profits I would consider. However there would have to be local reasons for me to move a company there.

    To be honest it is better culturally, financially and language wise to move to move company to Isle of Man and pay zero tax.
  14. superman

    superman Member Entrepreneur

    100K in profit is sure a good universal starting point.
    But sometimes there are reasons to use it with less, if someone is looking for good banking, crypto banking, merchant accounts and such.

    To be honest too, if I could go with a zero tax country I would too, but this don't work anymore in most european countries.

    all well, I know that is a "little" complicated in Switzerland compared to countries where you pay country wide the same tax.
  15. blueweb

    blueweb Corporate Services Mentor Group Business Angel

    does this not apply for Switzerland any longer or you mean it has never been like that?
  16. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    Switzerland is not part of EU and has no passporting, marketing of financial services access to the EU. This is whether the company is regulated or not by FINMA. You may want to think wisely about what it is you want to do in Switzerland and where your clients will be.

    Zug as the new crypto valley is interesting, but are you sure you are ready to deal with Swiss bureaucracy? I have quite often swiss companies asking about opening bank accounts outside Switzerland as the banks are unworkable and anal in operation.
  17. auric

    auric Offshore Agent Mentor Group Business Angel

    what does that mean poo¤%&&
  18. superman

    superman Member Entrepreneur

    I have mean that today you need accepted Business structures in many countries. I'm a resident of a country where classic offshore setup are not accepted, the place of controlling counts is what the reason is that I go what works for me.

    @Martin Everson
    What you write about Swiss banks I never seen, more the opposite of this.
    I know such only from UK and CY where this is usual behavior of Banks.
    Everyone should think wisely in whatever country he incorporpoate if it fits best.
    Crypto (must not be Zug), switzerland and bureaucracy: We have incorporated a regulated Crypto trading company in my opinion ultra low time, without troubles and multiple working Bank accounts.
  19. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    It means they are very Swiss in behavior.
  20. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    My point is zero tax and no bureaucracy is always better than low tax and bureaucracy...lol
    lostguy likes this.