SWITZERLAND AS AN ALTERNATIVE LOCATION

The marketing of particular locations is becoming more and more important for companies. Competition requires a mature European and international market strategy. The choice of a European location is a key element of this strategy. By choosing Switzerland or moving the head office or headquarters to Switzerland, there are clear advantages as far as the procurement of capital is concerned on the one hand and the well-known tax advantages on the other.

Company formations in Switzerland have for a long time been attractive to the business community because of the liberal basic conditions. There are different legal forms and forms of company to choose from. The business and trading freedom of the Swiss Federal Constitution combined with low levels of regulation also create the ideal conditions for foreigners to organise business activities in Switzerland on a permanent basis and in a successful way.

Zug is the strongest canton in Switzerland from a financial point of view with a model tax policy for natural and legal persons.

The extensive infrastructure in the areas of banking, trusts, asset management, and legal and tax advice is completely able to meet the requirements of international business.

SWISS CANTONS

MUNICIPALITIES OF ZUG

Source: Federal corporate census 2005

COMMERCIAL STRUCTURE

Source: Federal corporate census 2005

INTERCANTONAL TAX COMPARISON

Source: Federal Tax Authorities, Bern 2005

INTERNATIONAL TAX COMPARISON

Quelle: KPMG International Tax Center, Amsterdam, Survey on OECD Corporate; Income Tax Rates, 1.1.2006; Tax Department KPMG Zug

REGISTERED COMPANIES IN ZUG

Source: Commercial Registry of the Canton of Zug

PRICE OF A CITY BREAK

Source: UBS 2006. Prices and Earnings Methodology: Expenditure includes two evening meals with wine, an overnight hotel stay for two, car rental costs (100 km), public transport and taxifare and various minor expenses (phone call, paperback, etc.).

PRICES

Source: UBS 2006. Prices and Earnings Methodology: The cost of a weighted shopping basket geared to Western European consumer habits containing 122 goods and services. Listed according to value of index (price level without rent).

TOTAL EXPENDITURE ON GOODS AND SERVICES

Source: UBS 2006. Prices and Earnings Methodology: The cost of a weighted shopping basket geared to Western European consumer habits containing 122 goods and services. Listed according to value of index (price level without rent).

PRICES OF SERVICES

Source: UBS 2006. Prices and Earnings Methodology: Weighted basket of 27 services.

APARTMENT RENTS

Source: UBS 2006. Prices and Earnings 2006 Methodology: Average cost of housing (excluding extremes) per month, which an apartmentseeker would expect to pay on the free market at the time of the survey. ¹ Rents are based on apartments built after 1980 (4 rooms, kitchen, bathroom; with garage) including all incidental costs, the level of housing comfort conforms to the expectations of salaried mid-management employees in areas favored by them. ² Rents are based on apartments built after 1980 (3 rooms, kitchen, bathroom, without garage; including incidental expenses) with an average comfort customary in the locality and near the city center. ³ The figures given are merely tentative values for average rent prices (monthly gross rents) for a majority of local households. n.a. = not available.

WAGE LEVELS

Source: UBS 2006. Prices and Earnings 2006 Methodology: Effective hourly wages for 14 professions, weighted according to distribution, net after deductions of taxes and social security contributions. Listed according to gross value of the index.

GROSS AND NET HOURLY PAY

Source: UBS 2006. Prices and Earnings 2006 dark grey - Gross income in EUR per hour grey - Net income in EUR per hour Methodology: Effective hourly wage in 14 professions, taking into account working hours, paid vacation and legal holidays. Weighting according to distribution of professions. n.a. = not available

INCOMES AND WORKING HOURS OF PERSONAL ASSISTANTS

Source: UBS 2006. Prices and Earnings 2006 Personal assistant to a department head in an industrial or service company, around 5 years’ experience (PC skills, 1 foreign language); about 25 years old, single. n.a. = not available.

TAXES AND SOCIAL SECURITY CONTRIBUTIONS

Source: UBS 2006. Prices and Earnings 2006 Total taxes and social security contributions in % of gross wages. Methodology: Income tax and mandatory or customary social security contributions (see p. 26). ¹ Including basic health care insurance n.a. = not available.

WORKING HOURS AND VACATION DAYS

Source: UBS 2006. Prices and Earnings 2006 Method: Annual working hours including vacation (paid) and legal holidays; weighted average of 13 professions (excluding elementary school teachers). ¹ Paid working days (excluding legal holidays). n.a. = not available.