The types of taxes currently existing in Switzerland can be divided into three major categories: federal taxes, cantonal taxes and municipal taxes. In order to avoid overlapping taxation, Switzerland has concluded double taxation agreements with most industrialized countries, to protect foreign investors from double taxation.
The Swiss tax system is characterized by various levels of direct taxation: direct federal tax, cantonal taxes and municipal taxes. The tax legislation in the individual Swiss cantons is often very different from one canton to another.
The cantonal laws and tax rates in Switzerland may vary considerably from one canton to another, which is why it’s important where it’s best to found a company in Switzerland.
The Swiss federal Council and the Government of the United Arab Emirates have decided to conclude a Convention in regard of the avoidance of double taxation with respect to taxes on income. The UAE is one of Switzerland’s most important economic partners in the Middle East, therefore a double taxation convention is meant to enhance bilateral economic relations between the two countries.
The most common types of companies established by foreign entrepreneurs in Switzerland are GmbH and AG. Both types of companies have their advantages and disadvantages, therefore the following information might be very useful for those interested in opening a company in Switzerland, to help them make a decision.