
A
holding company registered in Switzerland is set up in order to
hold participation rights in other
companies. As stated by the
Swiss Tax Law, this
type of company is not allowed to enter any commercial activities in this country and it is generally registered as
joint stock company or
limited liability company.
Taxation of Swiss holding companies in the canton of Zug
Zug, one of the
Swiss cantons, provides some of the
best tax conditions for the
registration of a holding company. In this sense, it is important to know that this
canton is the
preferred business destination in Switzerland for a
holding company (
1 in 4 holding companies in this country are
set up in Zug) due to the following
tax conditions:
- • if specific conditions are met, the holding company can benefit from an exemption on the cantonal tax;
- • the corporate tax applicable at a federal level is imposed at a rate of 8,5%;
- • the business form can also benefit from an exemption on income or gains deriving from qualifying participations;
- • if the company performs investments in the real estate sector, it can qualify under the privileges provided by the double tax treaties signed by Switzerland.
Conditions for obtaining tax exemptions of the Swiss cantonal tax
As mentioned above, the
Swiss holding company can benefit from an
exemption on the Swiss cantonal tax and
our team of specialists in company registration in Switzerland can offer advice on the qualification requirements. One of the main aspects that have to be fulfilled refers to the
company’s articles of association, which have to prescribe that the business will have as a main activity the
management of equity investments on a
long-term basis.
The
company may enter only in specific business activities, such as
holding and/or exploitation of intellectual property,
debt financing or subsidies and others. Investors are invited to
contact our team of consultants in company formation in Switzerland for more details regarding the activities of a
holding company, as well as on other
tax benefits it can obtain in a certain
Swiss canton.