Like most of the countries, Switzerland
applies withholding taxes
to companies operating here. The rates at which such taxes
are imposed can vary from 0% to 35%
, depending on their nature and the nationality of the recipient. At the same time, they can have different rates depending on the provisions of the double tax treaties
signed by Switzerland
. Our team of Swiss lawyers
can offer in-depth assistance on the manner in which withholding taxes
Types of withholding taxes in Switzerland
As a general rule, withholding taxes are imposed for the following types of payments:
Dividend tax in Switzerland
In the case of the withholding tax on dividends, Switzerland
applies a standard rate of 35%, but the payment can be exempted from this tax
under the provisions of the Switzerland – European Union (EU) Savings Agreement
, on which our Swiss law firm
can provide more details.
However, this regulation can only enter into force as long as the parent company owns 25% of the subsidiary’s capital
. It is also necessary for the respective company to be a legal entity
residing in one of the EU’s member states.
Depending on the stipulations of the double taxation treaties
signed by the representatives of the country, the withholding tax on dividends
can also be applied at the following rates: 5%, 10% or 15% or 20%.
Interest tax in Switzerland
Investors who want to open a company in Switzerland
must know that the withholding tax on interest
is generally not applicable. There are few situations in which the tax is imposed, as follows:
• interest from bonds;
• interest from bond-like loans.
In the case of the above mentioned situations, the withholding tax on interest is applied at the rate of 35%.
Royalties tax in Switzerland
Although numerous other countries impose the withholding tax on royalties
, businessmen who want to start a company in Switzerland
will not be taxed in this case, as the tax
is not applicable here.