Mar 20 2024
Tax in Zug

Zug, a Swiss canton known for its advantageous tax system, has recently enhanced its appeal to businesses through tax reforms that came into effect on January 1, 2024. These reforms, strongly supported by the local electorate with over 72% of the votes, aim to strengthen the canton’s competitiveness and attract international investments, focusing on the benefits for businesses.

One of the key changes was the selective adjustment of income tax rates, making Zug even more attractive for businesses looking to optimize their tax burden. This includes specific measures to relieve corporate taxes, including increased deductions for childcare aligned with direct federal tax, benefiting the employees of companies and positively influencing the decision to establish firms.

Furthermore, the reduction of capital tax rates by 15% and the doubling of allowances are significant incentives for businesses and entrepreneurs. This strategy is partly a response to the OECD’s minimum taxation, aiming to maintain the flexibility and attractiveness of Zug as a business location despite international restrictions.

The reform also includes measures to reduce the financial burdens of resident municipalities, which could lower indirect costs for companies. Moreover, maintaining increased personal deductions and raising capital tax exemptions for various entities strengthens the canton’s tax appeal to investors and firms.

These initiatives reflect Zug’s commitment to offering an advantageous tax environment, thus reinforcing its status as a preferred location for companies seeking tax benefits in Switzerland.

ddlxddlx 0 Comments
May 6 2024
Our company in Dubai

Here is the translation of your text into English:

In the United Arab Emirates, there are three main types of companies available for non-Emiratis: offshore companies, free-zone companies, and mainland companies. Each type offers specific features tailored to different business needs and investment strategies:

  1. Offshore Company:
    • Purpose: Asset management, investment, and international trade, without physical business activities in the Emirates.
    • Ownership: 100% foreign ownership allowed.
    • Taxation: Exemption from local taxes on profits and VAT, depending on the zone.
    • Operations: Can trade internationally and, under certain conditions, with the local market (often through local distributors).
    • Physical Presence: No need for a physical office in the Emirates.
    • Confidentiality: Provides a high level of confidentiality and anonymity protection.
  2. Free-zone Company (Free-zone):
    • Purpose: Promote international trade and investment in specific sectors, with tailored infrastructures and services.
    • Ownership: 100% foreign ownership allowed.
    • Taxation: Exemption from taxes on profits and VAT, depending on the zone.
    • Operations: Can trade internationally and, under certain conditions, with the local market (often through local distributors).
    • Physical Presence: Requires an office or physical space in the free zone.
    • Specific Advantages: Customs and logistical facilities, depending on the specialization of the free zone.
  3. Mainland Company:
    • Purpose: Operate freely throughout the emirate and the local market without geographical restrictions.
    • Ownership: Historically required a local Emirati partner holding at least 51% of the company, but recent reforms allow 100% foreign ownership in some sectors.
    • Taxation: Subject to local tax legislation, although the Emirates are widely regarded as a tax haven.
    • Operations: Ability to trade directly with the local market and obtain government contracts.
    • Physical Presence: Requires an office or a physical location in the emirate.

These options offer various opportunities and challenges for international investors, depending on their specific business plans and the need for access to the local Emirati market.

Interested? Contact us for an initial discussion: info@p-bridge.com

 

ddlxddlx 0 Comments