CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Switzerland Defends Corporate Tax System In Brussels

Switzerland Defends Corporate Tax System In Brussels

by Ulrika Lomas, Tax-News.com, Brussels

16 December 2005


Swiss officials met with European Commission officials on Thursday to discuss Switzerland's system of corporate tax, which Brussels has suggested may contradict the EU/Swiss free trade agreement.

In Switzerland, cantons are free to set their own tax rates within the framework of the 2001 Tax Harmonisation Act. This allows cantons to compete to attract foreign companies, and the country has gained a reputation for attracting wealthy foreign celebrities and business persons with special tax deals.

However, in a letter sent to the Swiss Mission in Brussels in October, the European Union suggested that certain parts of the Swiss corporate tax regime "may be incompatible" with Switzerland's obligations under the 1972 Free Trade Agreement between Switzerland and the European Union.

The EU specifically took issue with legislation in place in cantons Zug and Schwyz which it said "grant fiscal advantage to undertakings for... economic activities taking place outside Switzerland".

In response, the head of the Swiss Mission in Brussels, Bernhard Marfurt, sent a three-page letter to European officials ahead of the talks which refutes the EC's claims. The letter also appeals for more specific details of which cantonal practices allegedly contravene the trade agreement.

The small central Swiss canton of Obwalden has become the latest to compete for business and investment after voters approved a cut in corporate tax to 6.6% from January 1- the lowest in Switzerland - in addition to reductions in tax on personal income.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »