Taxation of holding companies in the canton of Zug
Opening companies in Switzerland in 2021 is relevant because the currency of the country is stable, and the purchasing power of the population is high. Tax rates in Switzerland in 2021 are relatively low, and the economic and political situation is favorable. To learn more details about starting a company, contact our experts at IT-OFFSHORE.
Features of the tax system
Personal income tax can range from 0% to 48%. The corporate tax rates vary depending on the canton where the company is registered. The federal rate on net income is 8.5%. There is an opportunity for a tax deduction. The total amount of the fee, taking into account cantonal and municipal fees, ranges from 11% to 26%.
Capital gains are included in the tax base. The overall rate of value-added tax is 7.7%. There are exemptions for some goods and services. In addition, social contributions, as well as capital and asset taxes, are required to be paid. The country has an agreement to avoid double taxation with many countries.
The advantages of opening a business in the canton of Zug and the nuances of the tax payment
The registration of holding companies in the canton of Zug allows conducting business under favorable conditions. According to the current laws of the country, a holding company is recognized as a legal entity that permanently manages investments. This type of firm does not carry out commercial work in the country.
The corporate levy rate is 11.85%. The normal level of capital levy in Zug is less than 0.07%. In this canton, the attitude towards holding companies is characterized by loyalty, and there is a favorable tax regime. It is possible to apply a 50% deduction for research and development costs.
The canton is considered one of the most developed in the country, and you can get support from the municipality in solving complex issues regarding business. It is possible to access e-government. Companies that have registered in Zug are entitled to apply for financial aid.
Holding structures can manage assets, and foreign commercial activities, which have no relation to the country of registration. Taxation of holding companies in the canton of Zug is low when compared to other jurisdictions, despite the abolition of a number of benefits in 2020.