a) Taxation of Companies:
Taxation of income and capital: direct federal tax: 8,5% of net income, + cantonal and municipal tax on net income, 5%-6,5 % depending on the canton and the community.
Withholding tax (e.g. on interests or on dividends): 35% withholding tax, there is a possibility of avoidance in whole or in part, if there is an active parent company in an EU country (based on art. 15 of the Switzerland-EU savings agreement). However, Swiss administration is well known for its tendency to impose bureaucratic hurdles, so the company paying dividends first has to hand in the form 823C, then answer to an extensive questionnaire without falling into a trap, and then wait for a 3-year approval before deciding on a dividend.
VAT: 8 % on transactions received by Swiss recipients, special rates for special tax objects; no VAT on export of goods and services; imports of services are subject to the reverse charge system.
b) Taxation of Partnerships:
Taxation of income and wealth: the owners are taxed, but not the company
c) Taxation of branches of foreign companies, taxed in a similar manner as a corporation
Taxation of dividends: on cantonal level, there are different rebates for dividends, especially in the canton Schwyz.
Taxes on income and wealth are calculated based on the family, and tax rates vary between cantons and communities. In most cases there is a progressive scale. Taxation: Direct federal tax plus cantonal tax plus communal tax.
Because of tax competition, cantons try to attract specific target groups by offering them certain tax incentives. Such incentives can be tax credits for qualified new residents for some of their expenses in the first years, short depreciation periods or the acceptance of certain costs as a flat percentage of sales.