Taxes

The parliament has increased the cantonal share of the direct federal tax to 21.2% to give the cantons financial leeway. This measure is intended to help prevent corporate relocations.

The USR III newly allows companies to deduct fictitious interest on excess equity for tax purposes, in order to offset losses from tax privileges. There is criticism of the potential "punishment of saving" through the current taxation of excess returns.

Most Swiss cantons plan to lower their profit tax rates and offset the losses through higher dividend taxes. This is happening in response to international pressure and the loss of tax privileges by 20,000 companies.

Self-employed individuals must record investments either directly as expenses or manage them as assets in order to depreciate them. The latter allows for annual depreciation, with the maximum amount being determined at the cantonal level.

Holders of shares or common shares in a GmbH or AG must list these and any distributions in detail in their tax return. Distributions are subject to withholding tax, while participations must be stated in the securities directory.

People with dual residence are subject to taxation in Switzerland and another state; double taxation agreements prevent double taxation. Switzerland has 53 double taxation agreements, of which 46 are active to facilitate economic traffic.

Domiciliary companies in Switzerland are only allowed to engage in administrative activities and are subject to a ban on business operations. They enjoy tax privileges as revenues from abroad are tax-free.

Switzerland levies an emissions charge on equity such as stocks and cooperative shares; exemption limit for incorporations/capital increases at 1 million francs. Abolition of the charge from tax reform temporarily stopped due to federal financial concerns.

Shell companies can be used for legal purposes such as asset protection and business confidentiality or illegal activities such as tax evasion. In Switzerland, especially in Zug, there are still around 50,000 such companies, although the pressure to abolish them is increasing.