BioAlps : Ideal investment conditions, lowest base corporate tax rates

Switzerland is pro-business and believes that companies should keep as much as possible of the income they earn. In other words, taxes should be low and costs effectively applied.

This helps to keep companies competitive - and the region too. In fact, it is highly competitive with other European city locations in both direct and indirect corporate and personal costs. In fact, the authorities create a supportive environment for business by offering favourable fiscal conditions through a combination of tax rulings and tax holidays, and special tax status privileges.

The result is that a company setting up in our region can benefit from :

one of the lowest base corporate tax rates in Europe
one of the lowest levels of compulsory contributions and income tax paid on salaries
particular tax advantages for service companies - like European headquarters - as well as holding and international trade companies
exemption from local taxes, and
the lowest Value Added Tax (sales tax) in Europe.

And with the cost of industrial premises and downtown offices very favourable too - less expensive than in Frankfurt, London or Paris, for instance – the region offers corporations a package of financial benefits that is hard to surpass.

"Among the many factors that favoured establishing our site along the Lake of Geneva, the prevailing economic policies and financial practices counted for a great deal."

Barry Wilson
President , MEDTRONIC Europe, Middle-East and Africa

Maximum tax rate applied to corporate income as of January 1, 2000

Country	Maximum tax rate
Ireland	24,00
Switzerland	24.50
U.K	30,00
Netherlands	34.50
France	34.33
U.S.A	40,00
Belgium	40,17
Italy	40.25
Germany	38.36

VAT in % - Standard rate applicable to the majority of consumer goods. Each country applies a lower rate for selected basic commodities, medication and cultural products

Country	Value-added tax rate
Switzerland	7,65
Germany	16,00
U.K.	17,50
Netherlands(1)	19,00
France (2)	19.60
Italy	20,00
Belgium	21,00
Ireland	21,00

'Worldwide Corporate Tax Guide 2000 ', Published by Ernst & Young, January 2000

Employee income tax rates on a gross annual salary of US$ 160 000.-
Maximum marginal tax rates, as of January 1, 2000

Employee married, with two children :

Town	Employee income tax on a gross annual salary of US$ 160 000	Maximum marginal tax
	%	%	Income level from which these rates apply (in US$)
Geneva	25.45	33.65	301205
Paris	21.25	52.75	81 590
London*	33,58	40	47 935
Dublin	35.06	42	42 045
Brussels	44	52	32 446
Frankfurt	36.55	48.50	78 629
Amsterdam	51,7	60	56 090

Arthur Andersen, Geneva, July 2000