A Swiss company must be incorporated in one of the Cantons. The following table sets out the effective corporate tax rates for a company operating in each of the cantons, and earning a taxable income of SFR 400,000. The rate of withholding may be reduced under double taxation agreements to which Switzerland is a party. Some Cantons offer special tax advantages, which are due to be terminated in 2000. Geneva Income Tax Cantonal taxes may distinguish between Swiss source and foreign source income for companies whose major activity is outside Switzerland.
Taxes are deductible from the net income.
The incentives apply to domiciled companies with neither premises nor staff within the canton. Foreign source income is totally exempt from Cantonal tax. Swiss taxes are deductible from the net income. Zug Income tax Incentives apply for domiciliary companies with neither premises nor staff. For domiciliary companies, there is a minimum amount.