Linkedin
Facebook
Email
more
When starting up a new company, creating a new activity within an existing company or a significant development of an existing activity, it is possible for the company to apply for a temporary tax exemption. With the end of special tax status, such as holding status or auxiliary company status, the temporary tax exemption is an alternative to be proposed to the tax authorities by means of a tax ruling. The latter is to be announced in the tax return. Indeed, the optimization of your company's taxation by this means can be part of the planning and management of your company's finances. We recommend a tax review of your activities and your accounting by our tax experts to confirm the possibility of transposing these measures to your company.
There are two kinds of exemptions:
- Exemption for direct cantonal and municipal taxes.
- Exemption for direct federal tax.
Cantonal, municipal and federal tax laws provide for specific tax relief or tax exemption measures that differ by region and business plan.
Cantonal and communal exemption
The exemption is to be requested from the cantonal department of finance. The exemption is temporary. It is therefore only for a limited period of time, generally 5 to 10 years. It is limited to direct cantonal and municipal taxes, i.e. income tax and sometimes also capital tax. Depending on the importance of the project, the exemption can be total or only partial.
The main conditions for obtaining the exemption are:
- The importance of the project to the canton;
- The number of jobs created;
- The investments made in the canton.
Depending on the type of activities carried out, the following companies in particular are considered to serve the economic interests of the canton: start-ups, production or industrial companies, administrative centers and headquarters with sales. The main criterion is the number of jobs created. In general, below 10 jobs, no exemption is granted.
Federal Exemption
The tax exemption is to be applied for at the Federal Department of Economic Affairs. The exemption is currently based on regional policy. It only concerns the direct federal tax (8.5%) and is limited to the territories defined by the ordinance.
In the French-speaking part of Switzerland, the parts still benefiting from the federal exemption have been reduced. The areas of application for tax relief cover certain municipalities in the cantons of Fribourg, Jura, Neuchâtel, Vaud and Valais.
The request for exemption, whether federal or cantonal, must be addressed by means of a complete file that presents:
- The project;
- The investments ;
- The attractiveness for the canton, respectively Switzerland;
- A business plan, which must sometimes be very detailed.
The right tax advice and the ability to present a high-quality file are decisive for the granting of an exemption. Thanks to our expertise in the tax and accounting field, as well as our vast network of experts (lawyer, notary, contacts at the tax authorities and within economic promotion organizations), we ensure that you obtain the best tax optimization and financial planning for your current project.
