Taxation of branch establishment
For tax purposes, a branch establishment is a business establishment which belongs to a natural or legal person with a foreign domicile. Consequently, it is only to a limited extent liable to pay tax on income which is economically able to be allocated to Switzerland.
The branch establishment of an incorporated firm is in Switzerland taxed like an incorporated firm.
There can thus only be a business establishment if there is a permanent business which contributes to the profit of the enterprise on its own account or is important from a business point of view.
The allocation of profit between the parent company and the business establishment is in principle undertaken on the basis of the accounts of the branch establishment.
A branch establishment may also claim a domicile tax privilege.
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