Country report Switzerland

Economic overview

The Swiss economy could grow at more than double its usual rate in 2021 and 2022, with GDP increasing by around 4% in both years.

The State Secretariat for Economic Affairs (SECO) in its December forecast said it expected GDP growth at 3% in 2021 and 3.1% in 2022 after output fell 3.3% in 2020.

The plunge in 2020, as organizations saw their request books unfilled and a large part of the help area shut down for extensive stretches, produced an expected deficiency of 72 billion Swiss francs ($81.32 billion) for the Swiss economy. 

Gross domestic product should get back to pre-emergency levels before the finish of 2021, with ventures by organizations supporting the recuperation. 

Switzerland is perhaps the most wealthiest country on the planet with an economy drove by monetary administrations and pharmaceuticals. Albeit outside of the European Union it approaches the coalition’s single market through a progression of treaties.

Main sectors of industry

The service sector with its business and monetary focus gives work to most of Switzerland’s workers. Close by banking and protection, item exchanging is a significant area. The travel industry likewise assumes a critical part for a lot of Switzerland’s Alpine district particularly. 

Agriculture is significant for the travel industry since it has molded Switzerland’s open country and customs. Albeit the area is in decrease, it actually creates most of the food burned-through in Switzerland. 

The two principle parts of the modern area – synthetic substances and drugs and mechanical/electrical designing and metals – have a solid fare center. 

The watchmaking business is Switzerland’s third biggest exporter and is prestigious worldwide for its top notch, custom and advancement.

Taxation in Switzerland

Resident companies are subject to Swiss CIT on their taxable profits generated in Switzerland. CIT is levied at the federal, cantonal, and communal levels. Non-resident companies are taxed on their income generated in Switzerland.

Switzerland levies a direct federal CIT at a flat rate of 8.5% on profit after tax.

Besides the direct federal CIT, each canton has its own expense law and duties cantonal and common corporate pay and capital assessments at various rates. Consequently, the taxation rate of pay (and capital) differs from one canton to another. Some cantonal and common assessments are forced at reformist rates. 

Generally, the generally surmised scope of the greatest CIT rate on benefit before charge for government, cantonal, and common assessments is somewhere in the range of 11.9% and 21.6%, contingent upon the organization’s area of corporate home in Switzerland. 

Most cantons diminished or will lessen their CIT rate with a subsequent compelling expense pace of some 12% to 14% in most of the cantons and present universally acknowledged substitution estimates, for example, an Organization for Economic Co-activity and Development (OECD) agreeable patent box, a R&D super allowance, and different measures.

Investing in Switzerland

Switzerland is, indeed, a preferred destination for investors due to its taxation system, geographic and political position, highly skilled professionals as well as its competitive business environment and economic stability.

Switzerland is an appealing business place for the worldwide organizations, because of its plan of action, that intends to give the ideal structure to the unfamiliar financial backers. Subsequently, about 30% of the world’s greatest brands have workplaces in this country. Truth be told, 15 Fortune 500 Companies, for example, Glencore International, Nestle, Novartis, Roche Group or ABB have headquarters in Switzerland.