Taxes

Profits can be distributed as wages/dividends or retained for tax-free capital gains. Both strategies affect tax burden and corporate liquidity.

In real estate transactions in Switzerland, a cantonally regulated transfer tax is due, which covers the administrative expenses. The tax institution varies depending on the canton; some waive it or allow certain allowances.

A mixed company in Switzerland primarily conducts foreign business and has a special status in tax law, which allows tax privileges in cantons. Nationwide, the regular profit tax of 8.5% applies to it, while foreign income is often tax-exempt.

Zurich strengthens startups through new tax regulations that assess young companies at their substance value during the start-up phase. The regulation, which takes effect immediately, also extends the start-up phase for medtech and biotech sectors to five years.

The Swiss approved the FABI initiative, which since 2016 allows a maximum of CHF 3,000 per year to be tax deductible for commuting. Employees can claim this compensation in their tax return regardless of the mode of transport.

The "marriage penalty" criticizes the tax disadvantage for married couples; an initiative demands its abolition. The referendum on this will take place on February 28, 2016.

Input tax applies to domestic recipients of services or materials from foreign companies. The tax liability applies from an annual receipt of over 10,000 Fr. or in the case of taxable activity.

VAT is due on agreed fees when invoicing and on received fees upon receipt of payment. Input tax deduction is made according to the invoice or payment date.

The USR III aims to end the unequal taxation of domestic and foreign corporate profits in Switzerland, but allows the cantons to continue setting their profit tax rates themselves. In the future, international companies can be supported through tax breaks on licensing revenues and research funding at the cantonal level.