Foreign companies in Switzerland
By Abdullah Demir, Walser & Partner AG
Any persons operating a business with a commercial activity and acting externally under their own name are liable for taxation. This also applies to companies who have their registered office abroad but are active in Switzerland.
Any persons with a turnover below CHF 100,000 from taxable services are exemt from tax, unless they have waived the right to tax exemption and are entered in the Register as a taxable person. Those excused from the obligation to pay tax are inter alia companies with their registered office abroad that are performing services in Switzerland and are only subject to service import tax.
Must a tax representative be appointed in Switzerland? — If a foreign company is commercially active and taxable in Switzerland, it must have a representative to give the company a domicile status through which all transactions concerning VAT can be conducted. Any natural or legal persons with residential or business domicile in Switzerland can be recognised as a representative. They do not have to be a trust company, lawyer or any particular type of professional, and may be a private person. With the exception of liability for tax debts and the payment of such debts, the representative assumes the obligations of the taxable person.
Registration for foreign companies with no Swiss subsidiary — If a business satisfies the pre-requisites stated, it must register with the Swiss Federal Tax Administration (ESTV). In addition, for the monetary claims required by law, a joint security without time constraint must be guaranteed by a bank domiciled in Switzerland or a cash deposit must be made.
Abdullah Demir, CEO
Walser & Partner Group, Freienbach, Switzerland
T: +4-1 848 688 888; W: www.walserpartner.ch
Abdullah Demir is the CEO and Partner with responsibility for all subsidiaries in Switzerland. Since 2000, he has been fully committed to providing added value to clients through dedicated support services and comprehensive expertise. Abdullah speaks German, English, French and Aramaic.
Walser & Partner Group focuses on the areas of accounting, auditing, tax consulting, fiduciary services, management consulting and real estate development. The offices are Iocated in Freienbach, Zurich and Zug, Switzerland, as well as Brazil and Dubai. The Walser & Partner Group supports more than 700 clients from 37 countries.
published: May 2014