Thanks to low-tax Switzerland habitually wins in the fight to bring in its jurisdiction a large transnational business. Meanwhile, the struggle is not only internationally but also domestically
From the 1960″s tone in the internal competition for investment asked Zug, which is chosen for offices such well-known giants as Johnson Johnson, Burger King and Siemens.
As Zug exhaust the potential of real estate and office space, the smaller cantons in the neighborhood of being incorporated into the game, writes The Wall Street Journal .. “In Zug, many years ago was made a correct decision that there should be a competitive tax system. Now we can observe the same trend among neighboring cantons who are trying to attract business,” - says PricewaterhouseCoopers partner George Meyer in Zurich.
At international level, Switzerland is competing with countries such as Ireland, the Netherlands, Britain and Germany. Among the main attractions of factors - infrastructure, an effective system of protection of intellectual property rights, the presence of leading research universities, but really a great advantage is the low tax rates.
Here in Switzerland it is the cantons that have much greater autonomy than U.S. states, play a decisive role in the struggle for large corporate taxpayers.
Two-thirds of the total amount of taxes levied at the cantonal level, the cantons also have considerable autonomy in setting social charges and fees, issuing permits for doing business, managing the construction.
Federal corporate income tax in Switzerland is 8,5%. At the cantonal level can set their own tax rates. Based on average cantonal and local taxes, the average rate of corporate income tax in Switzerland is 21.2%, compared with about 30% in Germany and 25.5% in the Netherlands, estimated analysts KPMG.
According to the report, KPMG (Corporate and Indirect Tax Rate Survey 2009), in 2009 the lowest tax rate on corporate income in Switzerland was recorded in the cantons of Obwalden and Appenzell Outer-Rhodes (12,5%). In this country there are certain benefits, such as holding companies. When preferential effective tax rate the company in Switzerland can be significantly reduced - to a minimum level of 5%. In addition, in some regions the company can get tax breaks for the period up to 10 years, said KPMG.
Corporation, for their part, try to optimize the tax burden and active transport activities in regional offices. Read More »
Putin: In 2009, Russia received 40 billion dollars of foreign investment
Foreign direct investment in Russia in 2009 exceeded 40 billion dollars, Prime Minister Vladimir Putin at a meeting of the commission to monitor the implementation of foreign investment.
“Last year was tough for both us and our partners, we are all confronted with serious difficulties, but nevertheless, the inflow of foreign direct investment in Russia is not stopped, and, according to preliminary estimates, the volume in 2009 amounted to more than than 40 billion dollars “, - quotes the prime minister” Interfax “.
“I think that in general we were able enough to cope successfully with the most acute manifestations of the global crisis, to keep our key competitive advantages and to resume growth in GDP”, - said Putin.
“And we must consider in order to create the most favorable conditions for foreign investment, bearing in mind that during the crisis unfolds fairly intense competition to attract these investments,” - he stressed.
Government will encourage those companies that will invest in the development of industry towns and high-tech industries.
Putin has once again talked about the need to create an enabling environment for investment in the Russian economy, including foreign investment: “We need to take further steps and measures to create the most favorable investment climate and the regime.”
According to him, refers to “an additional set of tax system, which should encourage innovation, to remove administrative barriers and streamline procedures of state control and the development of modern technical regulations.”
“All this should lead to the creation of an enabling environment for innovation, because our main task is to go gradually from monoekonomiki, diversify the economy”, - said Putin. Read More »