Company in Switzerland ?

[Marzio]

I am currently in the process of double checking that

Could you please update the thread with your findings if a branch can indeed distribute profits directly to the shareholders?

 

[antrock333]

Will do. Maybe @ffbkdavid knows that already and could answer here as well?

 

[clemens]

Though it doesn't really makes sense to me and I am currently in the process of double checking that, as I myself looking to restructure my Swiss holdings.

sorry to ask and if you already mentioned that. Are you located in Switzerland or is it only your holding company?

 

[drspak]

I am interested in learning more about the opening of a branch in Switzerland to manage royalties for trademark management and registration. I could contact me privately thanks

 

[Marzio]

a branch can indeed distribute profits directly to the shareholders

A branch can't distribute profits directly to shareholders, profits first needs to be transferred to the head company and then to the shareholders.

 

[tacokai]

Why are you all interested in Switzerland as as setup for your business?

 

[Marzio]

Since 2020 there is "patent box" in place where profits from patents and comparable rights are taxed at a lower rate. The discount may not exceed 90% and each canton may put a lower discount in place. For example canton Lucerne plans only 10% discount. Non-patented inventions and copyrighted software do not qualify for the patent box.

Do you know if in the "patent box" are included licensing / franchising deals?

Also, does anybody know how to interpretate this table?

Patent box 10% means that for profits from patents you have 10% discount on the current corporate tax rate in Geneva (which is 13.99%), is that correct?

I don't know how to interpretate relief limitation and dividend taxation.

I guess dividend taxation means that you are taxed only on 30% of dividends that you distribute?

@ffbkdavid, @antrock333 can you help out decoding this table?

 

[JustAnotherNomad]

The way I understand it, the dividend taxation column tells you how much of the dividends paid out you pay taxes on. You pay out 100k - if it says 50% there, you only pay tax on 50k. That’s because you’ve already paid corporate income tax, so they say it’s unfair that you pay full personal income tax on top of it, for the same money. But that’s only the canton level tax - there is also federal tax.

 

[Marzio]

In Lucerne the tax relief due to the patent box and the additional deductions for R&D may not exceed 70 percent of the taxable profit.

Ok this answers the "relief limitation" column

the dividend taxation column tells you how much of the dividends paid out you pay taxes on. You pay out 100k - if it says 50% there, you only pay tax on 50k

This is how i understand it as well

 

[Marzio]

The dividend taxation column shows not the relief you get but the actual percentage of the dividends that will be taxed. 50% is easy, is 50% but 70% means that you will be taxed on 70% of the dividends and not the 30% like i thought.

source

 

[erni]

Anyone in this thread know about some good, trusted and not to expensive Swiss company formation agency?