Taxes in Switzerland and in Appenzell Inner Rhodes

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Taxes in Switzerland and in Appenzell Inner
Rhodes
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Federal taxes Cantonal taxes Community taxes
Individuals Legal persons
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Federal taxes Individuals progressive tax
rate Corporations 8,5 after tax (7,42
pre-tax) Value Added Tax (VAT) 7,6
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cantonal and community taxes Individuals
Development of tax burdens
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• Income tax (progressive)
• maximum rate 15.68 (Appenzell
  protestantisch, 2006 ohne Bund)
• Vermögenssteuer (proportional) 2.94 Promille
• Half-tax procedure for venture earnings
• aims
• - reduction of the economical double burden

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• The tax for dividends from corporations with a
  Swiss place of business will be calculated by
  using the half rate of the taxable total income,
  provided the taxpayer holds a longterm amount of
  holding of at least 20 per cent or the
  participation has a market value of at least 2
  million Swiss Frank. (Art. 38 Abs. 4 StG)
• Half-taxed venture earnings2001 5.1 mio. / 2002
  11.6 mio. / 2003 14.5 mio. / 2004 16.1 mio.

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Tax comparison of the Cantons
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Tax comparison of the Cantons
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Flat-rate tax for foreigners older than 55 years

• Foreigners without gainful employment in
  Switzerland
• Assessment based on the cost of living(usually
  the fivefold of the renting costs respectively
  own rent)
• Monitoring
• at least income from Swiss sources
• capital tax
• minimal factors (alternatively)
• modified expenditure taxation (use of double
  taxation)

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Inheritance tax
1 for the descendants tax-free amount CHF
100'000.00per descendant descendants up to the
age of 35 CHF 200'000.00 tax-free
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Federal, cantonal and community taxes corporations
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Characteristics for the taxation of corporations

• Practice for amortisations
• for movable goods without compensation addition
  for over-amortisations
• Mixed company
• regular taxation (no tax privilege)
• abroad-abroad-deals will be allocated to the
  unilateral permanent establishment abroad
• 10 per cent in advance regarding profits of
  permanent establishments abroad

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Characteristics for the taxation of corporations

• Tax reliefs
• as long as serving the econimical interests of
  the canton
• only for the year of founding Gründungs- not more
  than the following nine years
• for fundamental changes of the operational
  actions
• in AI only for single cases (regular tax burden
  is competitive)
• regular taxation for the basic profit
• thereover scaled, increasing tax reduction
• regular taxation for capital

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New regulations since January 1st, 2008

• Origination of over-all tax rates for profit and
  capital taxes (percental spreading on state,
  districts and communities law sets a range the
  High Council sets the rates annually)
• Reduction of the profit tax from 9.8 (old) to
  8.8 (new)

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New regulations since January 1st, 2008

• Reduction of the capital tax from 0.63 per mille
  to 0.5 per mille (resp. 1/10 of the rate for
  holding and administrative companies) )
• Reduction of the minimum tax for the capital
  fromCHF 630 to CHF 500 )
• ) all figures total tax rates federal,
  district and community taxes (not simple tax)

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administrative / mixed company
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miscellaneous contry comparisions (D CH USA)
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Im looking forward for new companies in
Switzerland! Use our consultation offerwe will
show you the best solutionsconcerning tax
matters! Thank you for your attention. AL TR
IMO AGAppenzell St. Gallen Herisau in
Switzerland