Special Tax Status Companies in Switzerland
The
“Mixed” Company – minimizing
taxes on international trading profits
Contributed
by: Chris Doyle, CEO Co-Handelszentrum GmbH
In
these times of high Government borrowing
and the resultant increased tax burdens
on companies and individuals , internationally
orientated companies and individuals may
want to give consideration to the tax savings
that may be available through establishing
a Swiss Company.
Such
a company might be used to conduct business
mainly outside Switzerland or conducting
certain of its administrative activities
from within Switzerland. Aside from its
internationally accepted jurisdictional
status and association with security and
quality, tax privileges may be available
under the “Mixed” company regime
resulting in exemption from Cantonal taxes
and a relatively low rate of overall corporation
tax (typically 8- 11%) on foreign source
income.
This
may be of interest in many situations to
mitigate existing high tax burdens or future
increases in taxes and should be of particular
interest to international trading companies,
importers, distributors, companies providing
products of services over the internet,
headquarter companies, finance and IP companies
to name but a few.
The
establishment of such a company may not
initially require the need to transfer or
hire local staff as services required might
be partially contracted to a Swiss Fiduciary
Agent .
For
example an importer of goods from China
into another relatively high tax EU country
may decide to incorporate a Company in Switzerland
through which it may conduct its international
purchasing and wholesale operations in Switzerland.
Goods
then may be sold on a wholesale basis to
retail or other sales channels in other
EU countries leaving a margin of profit
to be taxed at a relatively low rate in
the Swiss Company. If physical goods are
involved , these would not need to be imported
directly into Switzerland. Over time additional
services might be provided from the Swiss
Company resulting in higher revenues/ margins
and or additional low tax revenues.
A
similar opportunity is available for businesses
supplying products or services over the
Internet . If these were made available
through a Swiss Company (which owned and
operated the web site) , trading profits
would be taxed at a relatively low rate
in Switzerland. Localised support or fulfillment
services might be provided to the Swiss
Company by a local contractor/company.
Further
information and a free consultation on Mixed
Companies in Switzerland and other forms
of tax privileged Companies in Switzerland
can be found by contacting Co-Handelszentrum
GmbH at info@co-handelszentrum.ch
or visiting their website at www.co-handelszentrum.ch
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