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TAX
Non-residents bank accounts in Switzerland
are completely tax-free. This means, there are no income
taxes, no capital gain taxes, no real estate taxes, no
inheritance taxes, no stamp duties, plus a bonus of your
privacy. With your single bank
account (say multicurrency account) you can connect direct to
the stock markets and trade globally. You can receive or send
payments in any world currency. You deposits do earn
attractive interest rates.
- Starting from July 2005, all offshore
banks comply to EU Savings tax directive on exchange of
information.
Non-Resident taxes in Switzerland
Swiss residents are subjected to income
and net wealth taxes. Non-residents as long as you do not
derive any income inside Switzerland, you are free from Swiss
taxes. Some of the examples which bind you for Swiss taxes are
- Real Estate Income
- Income from business establishments in
Switzerland
- Interest on mortgages
- Pensions relating to former employment
in Switzerland
See: EU Savings
income directive on EU resident persons (from july 2005)
What is a Swiss withholding tax ?
Withholding Tax
(Verrechnungssteuer, impôt
anticipé ) rated at 35%, levied on dividends, bank loans,
bank interest rates and certain insurance payments. The
procedure of this tax, is often paid by the payee
domiciled/headquartered in Switzerland, rather than the
recipient. For foreigners having bank accounts (other than
Swiss Franc CHF currency) - this is exempt. The bank (payee)
deducts withholding tax from your interest/dividends earned
from your account and pays the rest to you. For example, if
you accrue CHF 100.- from your Swiss franc deposits, CHF 35
will be levied on you, and you will be paid only CHF 65.- out
of the interest income.
IRS Withholding Tax for US Citizens
If you are US citizen, IRS regulates you
with a new withholding tax system, making a must for you to
pay taxes on dividends, interest rates gained from domestic US
securities brought from a foreign held offshore bank accounts.
For countries with strict banking confidentiality
(Switzerland) banks are required to levy a 31% backup
withholding tax on US investors who fail to disclose their
taxable holdings. That is why we ask our US customers to
refrain from investing in US securities directly from your Swiss
bank account.
See:
The
IRS and Swiss Confederation Tax treaty part 1
The IRS and Swiss Confederation Tax treaty part 2
The IRS and Swiss Confederation Tax treaty part 3
The IRS and Swiss Confederation Tax treaty part 4
Tax Avoidance - Tax Evasion - Tax Fraud
In Switzerland, in case of mere tax
evasion, just avoiding taxes on their part of personal
income/assets cannot be considered as crime, and banks are not
obligated to release the customer identity to tax authorities
or any third parties as the Swiss consider this as their own
internal matters. However, the situation is different in case
of 'tax fraud' considered as criminal offence in Switzerland.
Ex. false accounting, false invoices. In order to get legal
assistance in Switzerland, for lifting of bank secrecy, the
foreign authorities must have a favorable evidence to address
a foreign tax payer liable for criminal offense.
Tax avoidance: occurs when a taxpayer
uses legal means to reduce or avoid the payment of taxes.
Tax evasion: is when a taxpayer fails to
declare income or assets which therefore cannot be taxed; this
is a violation of the law. In this manner a tax is avoided
when a tax assessment cannot be performed even though it
should, or when a tax assessment is performed incompletely.
Swiss banks, as third parties, have no obligation to supply
information directly to the tax authorities.
Tax fraud: is the most serious case, as
the taxpayer uses ways and means to mislead the tax
authorities, such as presenting falsified evidence, forged or
incorrect records such as account books, profit and loss
statements, balance sheets, income statements or any other
documentary evidence. Fiscal fraud is similar to fraud or
forgery. Tax fraud is subject to criminal prosecution and
punishable by imprisonment and /or a fine. In the case of tax
fraud, the bank is obliged to inform the investigating
authorities and, where necessary, may be called to testify.
More information: Geneva
Financial Center
We make offshore bank account setup easy: Just a copy of your passport
"apostille" or ID required.
Information About:
Anguilla
Offshore Corporation -
Belize
Offshore Corporation -
British Virgin
Islands Offshore Corporation -
Dominica
Offshore Corporation -
Gibraltar
Offshore Corporation -
Panama
Offshore Corporation -
Seychelles Offshore Corporation -
USA LLC
Offshore Corporation -
USA
Delaware Offshore Corporation -
USA Oregon
Offshore Corporation
Copyright © 2003-2008 SwissBankingAccounts.com
Consulting
AR LTD
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