Taxation in Switzerland

Taxation in Switzerland

• Because of federal structure does not have a uniform taxation system.
• Taxes may be levied at federal, cantonal and communal levels.
• Value Added Tax (VAT) levied exclusively by Federal State.
• Commercial activities tolerated if do not exceed 20% of company's income.
• Some cantons require companies not to exceed 20% of total expenses.
• Exemption of foreign source income subject to Swiss tax normally lower

http://www.ocra.com/solutions/taxation_switzerland.asp

http://www.agentschapnl.nl/sites/default/files/bijlagen/Zwitserland%20D&B%20november%202011.pdf

Imports

• Trade key to prosperity in Switzerland via Rhine River
• Relies on large quantities of imported raw materials for industry
• Exports mostly machinery, chemicals, cars, metals; agricultural products and textiles
• EU largest trading partner accounting for 79% of imports
• Import prices heavily affected by exchange rates
• It takes five documents and nine days to import a standardized shipment of goods.

Tariffs 

• Import duties are generally low at under 3% for most raw materials and industrial
• Duties are specific--based on weight, rather than value
• 90% of its imports from WTO member countries, extends MFN tariff treatment
• Information Technology Agreement under WTO eliminating tariffs on IT products
• Preferential duties for development countries
• Imports of agricultural products higher import duties, supplementary duties, and tariff-rate quotas.

Licensing

• Import licenses are required for certain products not subject to quotas.

Non-Tariff Barriers

• Non-Tariff barriers are more common in Switzerland than in EU
• Permits legally manufactured EU products to circulate freely
• Lifted ban on parallel imports--patent protected goods

http://www.ocra.com/solutions/taxation_switzerland.asp

http://www.agentschapnl.nl/sites/default/files/bijlagen/Zwitserland%20D&B%20november%202011.pdf

Legal/Bureaucratic Environment in Switzerland

Business Environment Overview

Switzerland is the most competitive country in the world and offers one of the most favorable business environments in the world.  Because of their natural environment, it causes virtually no risks to businesses and the quality of the infrastructure is very high. The rule of law is strong and there is very little corruption, the authorities generally work efficiently, the tax and regulatory burdens on the economy are low, while industrial relations are very peaceful and the labor market is highly efficient. Accordingly, Switzerland regularly performs strongly in cross-country comparisons of competitiveness. For example, the World Economic Forum’s Global 2012-13 Competitiveness Report has ranked Switzerland the most competitive country, out of more than 130 included in the survey.  Below are the Top 10 countries.

Small and medium-sized enterprises form the backbone of the economy and dominate sectors 

such as manufacturing and retail trade. The country also hosts an impressive roster of multinational corporations, including two of Europe’s top pharmaceutical companies, Roche and Novartis, the bio-technology giant Serono, and the world’s largest food company, Nestle, while UBS is among the world's largest banks. 

Weaknesses in the business environment include: inefficient government bureaucracy, complex tax regulations, high labor costs and prices, a lack of competition in certain sectors regulatory differences vis-a-vis neighboring countries (Switzerland is not a member of the EU); and relatively weak disclosure requirements for companies, reflecting an attachment to secrecy in financial matters.

http://www.agentschapnl.nl/sites/default/files/bijlagen/Zwitserland%20D&B%20november%202011.pdf

http://www.weforum.org/news/persisting-divides-global-competitiveness-switzerland-singapore-and-finland-top-competitiveness

  

Economic Climate of Switzerland

 

The Economic Climate of Switzerland

      Switzerland's economy has not dramatically changed in last year and still remains to be the fifth freest country in the economic category.  Unemployment is extremely low with 4.2 and the GDP is 362.4 billion.  Some of the reasons the economy is so successful in Switzerland can be thanked for the trading, taxes and investments right.  Their rules and regulations for trading and investing allows them to be extremely competitive with other countries.  Even though trading relies on other countries, the other European counties by most of their exports.
      When the other European countries were not doing well in 2009 due to the economic downturn, it did effect the Swiss's economy.  Therefore, the Swiss government decided to do something for themselves to help them and the appreciation of the franc.  The national bank allowed a zero-interest rate which allowed the economy to recover as well as a 3.0 % growth in 2010.


Below is a chart of how the economy had a great downfall in 2008 and 2009 and how quickly it grew within a year

Works Cited: http://www.heritage.org/index/country/switzerland http://perspectives.pictet.com/2011/09/01/switzerland-gdp-growth-2/ https://www.cia.gov/library/publications/the-world-factbook/geos/sz.html

Urban/Rural Population

Urban population (% of total) in Switzerland

www.studentsoftheworld.info/pageinfo

www.swissworld.org/en/geography/town_and.../where_people_live/ 

The Urban population (% of total) in Switzerland was last reported at 73.60 in 2010, according to a World Bank report published in 2012. Urban population refers to people living in urban areas as defined by national statistical offices. It is calculated using World Bank population estimates and urban ratios from the United Nations World Urbanization Prospects.

The Rural population (% of total population) in Switzerland was last reported at 26.40 in 2010, according to a World Bank report published in 2012. Rural population refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.