What is it? How does it work?

An auxiliary company is particularly suited to companies who are based overseas. It is essentially an overseas operation, and may have some income from within Switzerland to a limited extent (max. 20% of revenue from within Switzerland). It may also have an officer and employed staff within Switzerland in order to administer its business.

 

 


Taxation of auxiliary companies

An auxiliary company within Switzerland has a substantially reduced rate of tax of between 8% and 12% on sources of overseas income.

It should be noted that companies who move their administrative functions into Switzerland can apply for preferential tax treatment for both joint and auxiliary companies.

There is also the possibility of benefitting from lower taxes and tax exemptions for dividends depending on the Canton in question.

AZFH is able to provide you with all of these services, and will be able to support you throughout the entire life of your business.