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Benefits of a Holding Company in Switzerland
A presentation brought to you by CompanyFormationSwitzerland.com
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Holding Company in Switzerland
• A holding company in Switzerland is an ideal solution for the investors who want to own majority voting rights in other companies.
• There are several countries in Europe that offer favorable prospects for holding companies, but Switzerland is currently the country offering the best tax benefits for this sector.
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Main Regulations for Holding Companies
• In particular, the laws of some specific cantons (Fribourg, Zug, Glarus) provide permanent tax benefits for Swiss holding companies.
• In order to qualify for the status of holding in these cantons, it is necessary that investments in foreign companies represent at least two-thirds of the total assets or revenues.
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Main Benefits for Holding Companies >>
• Holding companies in Switzerland benefit from a preferential tax regime which is around 8%. 7.8% for the corporate income tax
on capital;
a corporate officer tax that oscillates between 0,35% and 0.075% of the capital.
• Our team of company formation agents in Switzerland can offer more details.
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>> Main Benefits for Holding Companies
• Even though the standard corporate tax rate in Switzerland is 35%, this country has several treaties which can reduce this rate to 5-15%.
• In terms of dividends received by subsidiaries from the Swiss company, it is necessary to verify the provisions of such treaties.
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Dividends for Holding Companies
• Most of the treaties apply a rate of 15%, even though Switzerland has signed an agreement with the European Union so that dividends paid by a subsidiary of a Swiss holding company shall not be liable for taxation in various conditions.
• This puts Switzerland in a favorable position of being able to receive dividends from EU countries free of withholding tax.
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Tax Regulations for Holding Companies >>
• Both the cantons and the federal authorities recognize favourable treatment when opening a holding company in Switzerland.
• The Swiss holding companies must have at least 20% or CHF 2 million of the share capital of other companies.
• Our team of specialists in company registration in Switzerland can assist on this matter.
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Cantonal Taxation for Holding Companies
• Switzerland is comprised of 26 cantons, which can have different taxation regimes.
• However, as a general rule, it is important to mention that holding companies are not required to pay income taxes applicable at a cantonal level.
• The holding structure can be exempted from paying the tax on dividends or on profit.
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Tax Deductions for Holding Companies
• Cantons exempt Swiss holding companies from all taxes on income, creating a holding privilege.
• This is available if the company can prove that two thirds of its profits are deriving from shareholding rights.
• The holding company is, therefore, not dependent on a deduction on capital investment.
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Consultancy Services in Switzerland
• Our representatives can offer further details related to the incorporation of a Swiss holding company.
• Our agents can also provide information on related matters, such as on the company’s share capital.
• Please contact our consultants in company formation in Switzerland for corporate advice.
Thank you for your attention!
• For more information please contact us at:
(+44)203-287 0408 (for international clients)
www.companyformationswitzerland.com
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