In Switzerland,
Swiss foundation has long been associated with the types of business models that offer attractive options to save tax and flexible business norms for high net worth business persons. One of the most sought after business set up offered by the country is that of holding companies which are deemed as a form of Stock Corporation.
For federal tax purposes, Swiss foundation are companies that are either holding at least 20% of the capital share of another company, which is its principal; or a company that possess shares, valued at a minimum of 2 million Swiss Francs, of another company. However,
Swiss foundation defines these companies in a different way. According to cantons, a holding company is a company that obtains its income from subsidiary remittances and it is a company that holds majority of its subsidiary shares.
In Switzerland, capital gains tax and corporate income taxes of holding companies are reduced both in the federal and cantonal levels. Additionally, the cantons also reduce a certain percentage from the net worth tax of holding companies. One of the greatest benefits that Swiss foundation offers to such holding companies is that their dividends from subsidiaries too are not taxed whereas pure holding companies are taxed at 0.5% to 1.5% by cantons.
In Switzerland, Swiss foundation has also double agreements with major countries which practically reduce the withholding tax to almost zero. Given the country’s political stability, secure currency and its strategic geographical position, it is indeed a great benefit for offshore companies to set up a holding company in Switzerland.
If you are thinking of setting up a Swiss foundation or any type of business model in this strategically positioned and politically stable country, Many Solicitor firms can help you out at each and every stop of Swiss foundation formation and also helps in
pilot trust,
business trust,
inheritance tax,
offshore Indian banking,
Indian wills,
property solicitor,
transfer of equity,
offshore company & trust and Panama foundation.
Author: John Smit
Pindoria Solicitors has not written this article and hence takes no responsibility or liability for it. Please contact the author directly to know more about Swiss foundation.
