1. Taxation
Switzerland is a federation consisting of 26 regional states and about 2,202 independent municipalities (as of January 2020). According to the Swiss Federal Constitution, in addition to the tax items explicitly reserved by the federal government, the regional states enjoy the rights and interests of the states. Taxation rights, thus forming a two-tier tax system of Swiss federal tax and local state tax (and municipal tax). Each local state (and municipality) still has considerable autonomy in taxation, and each local state (and municipality) can determine its own tax rate, so the taxation between each local state and each municipality is highly different.
Total Tax Rates (TTR) refers to the percentage of tax and mandatory fees borne by a company in its profits. In terms of international comparison of total tax burden, Switzerland's tax system is very competitive, ranking in the world in 2016. 3rd Place. Switzerland's tax system is not only attractive to corporate taxpayers, but also to individual taxpayers. Switzerland's personal tax burden is about the middle level in international comparison.
The standard value-added business tax rate in Switzerland is 7.7% (from 1 January 2018), the lowest in Europe (19% in Germany, 20% in France, 20% in Austria, 22% in Italy); the business tax rate for accommodation is 3.7% %; The business tax rate for daily necessities, food, books and newspapers, non-alcoholic beverages, etc. is only 2.5%.
Import duties in Switzerland are levied according to the quantity, and the tax rate is low, which is conducive to the import of high-quality products with light weight and high value into Switzerland. The average tax rate for Swiss industrial products is about 1.8%. Some products, such as textiles, have a tariff of 5.6% and a clothing tariff of 4%. However, in order to alleviate the high price situation, Switzerland plans to exempt agricultural products and fishery products from January 1, 2022. It includes import duties on all industrial products such as machinery, metals, semi-finished and consumer products (eg: clothes, vehicles, toys, watches, shampoo) and other supplies.
Switzerland has signed double taxation agreements with many countries. In addition to the bilateral agreement signed between Switzerland and the European Union on July 1, 2005, there are more than 70 tax treaties in effect. Since Switzerland's international tax treaty is an international convention, it replaces Tax regulations such as the Swiss Confederation and the local states (and municipalities). The my country-Switzerland Double Taxation Agreement on Income Tax was signed in 2007, amended in 2011 and entered into force in the same year.
2. Finance
The Swiss financial industry accounts for 9.2% of the Gross National Product (GDP) (2019) and employs about 206,400 people, which is about 5.2% of the Swiss employed population (2019). It is an extremely important part of the Swiss economic structure. The main areas of expertise in the Swiss financial industry are private banking, asset management and insurance. Switzerland's political and economic stability has won the trust of customers around the world. Switzerland's economic growth is stable, unemployment and inflation are low, and the Swiss franc is one of the important international reserve currencies. The globalization of the Swiss financial industry, there are many private banks, world-renowned big banks such as UBS Group AG and Credit Suisse Group AG are world-renowned, and their business scope is aimed at international diversification, providing overseas consortia. and Regal's asset investment and management services.
If the company's finance needs to promote its business, it can apply for various loans from banks, such as guarantee or mortgage loans. The loan terms and amount depend on the company's reputation and future prospects. The Swiss financial services provider offers guarantees, convertible loans, equity financing, venture capital and private equity investors and more. According to The Global Competitiveness Report 2019 of the Swiss World Economic Forum (WEF), Switzerland ranked 4th in the world under the "Financial System" project, and also ranked 4th under the "Financial Stability" project. Ranked 4th in the world.
3. Exchange
Since the "EU Agreement on Free Movement of Persons" came into effect in 2002, a large number of EU immigrants have poured into Switzerland, resulting in a rise in demand for the real estate market. At the same time, in the face of the European debt crisis, the Swiss franc has appreciated sharply. Although the import cost has been reduced, the real estate market in Switzerland has bubbled. serious risk of denaturation. In response to exchange rate financial problems, on January 15, 2015, the Swiss National Bank (SNB) categorically canceled the 3.5-year monetary intervention policy of "1 euro to 1.20 Swiss francs as the lower limit", causing volatility in the global foreign exchange market. On January 20, 2015, the exchange rate between the euro and the Swiss franc reached almost one-to-one parity. The Swiss National Bank cancelled the currency intervention. Although the Swiss franc appreciated during the period, the export industry lost its price competitiveness and incurred inevitable book losses. From January 2015 to July 2017, the exchange rate between the euro and the Swiss franc remained oscillating between 1.04 and 1.10. Since January 2017, the international currency situation has changed, the political economy in Europe has gradually stabilized, and the economy has recovered. appreciation. Since August 2017, the exchange rate between the euro and the Swiss franc has even exceeded 1.15. The Swiss franc appreciates strongly, and although the price competitiveness of its export industry is suppressed, its main export commodities such as pharmaceuticals and chemicals, watches and jewels, precision instruments and machinery have taken steps to strengthen innovation and research and development to strengthen their substantial competitiveness.
According to the Swiss National Bank, the average exchange rate between the euro and the Swiss franc from 2016 to 2019 is as follows:
1 EUR = 1.1125 CHF (2019 average exchange rate)
1 EUR = 1.1549 CHF (2018 average exchange rate)
1 EUR = 1.1116 CHF (2017 average exchange rate)
1 EUR = 1.0901 CHF (2016 average exchange rate)
|
