Switzerland is a peculiar European country.
Nestled hundreds of metres into the Alps, it
has the GDP and population of an eastern European economy, but
houses roughly 30% of the Fortune 500 in some capacity.
In the world of fund management, it may not see the level of
currency regional neighbours like Luxembourg may see circulate
through its borders on behalf of institutional investors, but
to individuals, family offices and private bankers the world
over, it has served as a virtual money pit thanks to a long
history of banking secrecy laws.
But what makes Switzerland such a desirable place for
business? One can argue that historically, it has always had a
competitive tax rate, but today, that is a race being lost in
Europe as the likes of American giants such as BlackRock and
Facebook flock to cities like Budapest and Dublin to set up
European operations, where corporate tax rates can hit as low
as 9% and 12.5%, respectively.
Globally, that margin is slipping even further as the US
largely halves its corporate tax rate to 21%, while the UK's
(still Europe) 19% seems negligible to Switzerland's 18%.
It is no surprise then that corporate tax reform has
remained a big issue in Switzerland in recent years, with 2019
no exception as tax reform goes to a second referendum in
To answer many of your queries, International Tax
Review has partnered with several Swiss tax advisors to
give you the key tax takeaways for the year ahead on everything
from information exchanges, to tax incentives and audits.
We hope you find the 2019 guide useful.
International Tax Review