Income tax is a compulsory levy on income made by the state or communities. This type of tax concerns two categories of individuals. Firstly, persons resident or staying in Switzerland are subject to this tax. The taxable matter is determined by the total income of the person. These resources consist of domestic and foreign revenues.
Secondly, a non-resident person is subject to tax obligations if he or she receives salary income from a business entity in the country. Also in this way, a non-resident person who receives dividends and interest on movable capital is subject to income tax. These are deductions at source. Non-resident persons who receive income from the rental of real estate of any kind, whether built or unbuilt, must also fulfil their obligation. This category also includes people who have resources from a company legally established in Switzerland.
As far as special schemes are concerned, the State Council has the possibility to validate tax reductions to newly created or reorganizing legal entities, with the aim of facilitating their establishment and development during their first years of activity. These reductions are usually granted for a specific period of time and must be requested in writing to the Cantonal Tax Administration, i.e. the Directorate of Tax Affairs.
They cannot exceed the ten-year period. Since February 8, 2011, it has become possible to grant them to legal entities that have obtained the status of young firms that develop innovations. From a legal point of view, that is to say to “JEDI” or young companies developing innovations. These decreases take the form of a full or partial reduction in regional and municipal taxes.
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