Neuchâtel: among the world’s most competitive tax rates | Taxes on profits halved | Comparison of taxes deducted from profit in different States | Lowest capital tax rates in Switzerland for holding and domiciled companies | Profits taxes deducted offset against Capital taxes | Special status companies | Fiscal accompanying measures | For more information
Neuchâtel: among the world’s most competitive tax rates
The Swiss federal system allows each of the country’s 26 States to set their own tax rates. In this way, income taxes can vary significantly from one Swiss State to another, with a considerable impact on a company’s competitiveness.
In the State of Neuchâtel, corporate tax rates are among the most attractive in Switzerland, which itself ranks among the top 10 counties in the world for this point. Furthermore, the new Neuchâtel tax rates have the big advantage to be perfectly EU-compatible, which is a guarantee of stability for the companies.
Regarding the value-added tax (VAT), it is fixed at 8% in Switzerland, among the lowest in Europe.
Taxes on profits halved.
To increase the competitiveness of companies based here, Neuchâtel is optimizing its taxation procedures by halving any taxes on profits. As such, federal, cantonal and communal level taxe rate reaches from 2016 a cumulated net total of 15.61% as compared to a Swiss average of 18.04%.
This optimisation, introduced progressively since 2011 has been followed by a lower personal income tax burden.
Comparison of taxes deducted from profit in different States
|Canton of Neuchâtel (Average)
|Canton of Vaud
|Canton of Berne*
|Canton of Fribourg
|Canton of Genève
|Canton of Zürich
*Calculated on net profit of 500,000 CHF
Source : Canton's websites and tax laws - 2015
Lowest capital tax rates in Switzerland for holding and domiciled companies
With a rate of 0.005‰, capital tax deducted in Neuchatel is the lowest in Switzerland for holding companies and domiciled companies.
Profits taxes deducted offset against Capital taxes.
Companies based in the State of Neuchâtel can offset their profit income taxes from the capital tax, which is not the case for all cantons.
This allocation translates into a partial or full exemption of tax on capital, fixed at 0.5% for ordinary companies. This applies to all limited liability companies who pay profit income tax to the State. Note however that profit income tax must still be paid and that any eventual losses cannot be deducted.
Special status companies
In the State of Neuchatel, special status companies with revenues from abroad are taxed on a fixed rate basis (cumulative cantonal, communal and federal taxes).
|Total net effective rate (before tax) resident companies
|Total net effective rate (before taxes) auxiliary/mixed companies
Capital is taxed on the basis of the holding rate of 0.005‰ with the possibility of a total allocation.
Fiscal accompanying measures
Fiscal accompanying measures can be granted on a case-by-case, based on elements deemed advantageous for the Neuchatel economy, notably in terms of employment, creating value or reinvestment.
For more information, contact:
Service des contributions
Rue du Docteur Coullery 5
2300 la Chaux-de-Fonds
Tél: 0041 (0)32 889 64 20