Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 24.07.2011, 17:42
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
If Zug is the lowest taxed canton, why don't all businesses simply just move there?

The question is this thread's title.
Reply With Quote
  #2  
Old 24.07.2011, 17:45
AbFab's Avatar
Forum Legend
 
Join Date: Sep 2006
Location: Zürich
Posts: 8,658
Groaned at 383 Times in 263 Posts
Thanked 13,025 Times in 4,456 Posts
AbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond reputeAbFab has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

To ask this question is not to understand Switzerland:

money isn't everything and ones own canton is the best place to live...
Reply With Quote
The following 5 users would like to thank AbFab for this useful post:
  #3  
Old 24.07.2011, 18:07
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
To ask this question is not to understand Switzerland:

money isn't everything and ones own canton is the best place to live...
So you're saying that the reason is that people stay in other cantons because they in general don't like to worry about paying some taxes? I'm not saying that is bad. I just want to be clear on this. I thought that maybe some rules and regulations of some sorts prevented businesses to flock to Zug. You're saying that is definitely not the case?
Reply With Quote
  #4  
Old 24.07.2011, 18:08
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
To ask this question is not to understand Switzerland:

money isn't everything and ones own canton is the best place to live...
I also find this strange because it's different that a business moves to Zug, than a person moving to Zug. The business itself, on paper, could move to Zug and the people could stay in their home cantons. Why don't businesses flock to Zug? That's a question that has been on my mind for a while.
Reply With Quote
  #5  
Old 24.07.2011, 18:12
Corbets's Avatar
Forum Legend
 
Join Date: Mar 2007
Location: DK - previously Zug
Posts: 3,321
Groaned at 168 Times in 122 Posts
Thanked 6,707 Times in 2,237 Posts
Corbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond reputeCorbets has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

I suggest a few years of business school, and maybe one or two years experiencing life - you'll come up with the answer then.
Reply With Quote
The following 2 users would like to thank Corbets for this useful post:
  #6  
Old 24.07.2011, 18:13
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
I suggest a few years of business school, and maybe one or two years experiencing life - you'll come up with the answer then.
Hehe. Well, if everyone just did their own research from scratch, we wouldn't even need these forums. I'm asking here because I thought that maybe somebody already had gone through "a few years of business school, and maybe one or two years experiencing life" so they could summarize their wisdom in a few sentences :P
Reply With Quote
The following 4 users would like to thank Wheat Hoarder for this useful post:
  #7  
Old 24.07.2011, 18:17
Forum Legend
 
Join Date: Dec 2006
Location: Zurich
Posts: 4,940
Groaned at 184 Times in 120 Posts
Thanked 8,599 Times in 2,882 Posts
Kittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Zug is expensive to live / have a letterbox in and there is limited room. There also is a certain prestige with other locations. It's a bit like saying "if everyone likes sunshine, why don't we all move to the desert?".
Reply With Quote
The following 6 users would like to thank Kittster for this useful post:
  #8  
Old 24.07.2011, 18:18
Pancakes's Avatar
Forum Legend
 
Join Date: Nov 2009
Location: Zurich-ish
Posts: 5,168
Groaned at 290 Times in 207 Posts
Thanked 10,928 Times in 4,111 Posts
Pancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond reputePancakes has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Just a few nights ago, I was watching a popular US journalism show, "60 Minutes," and the topic was how more and more US companies are moving their headquarters out of the US in order to avoid the US's high corporate tax rate...

I found it interesting that the only city that was highlighted was Zug. Apparently, quite a few US companies are renting office space in Zug and call it their "headquarters" in order to pay the lower Swiss tax rate and avoid the higher US tax rate. But in reality, their headquarters usually aren't really there in Zug. Basically, they just keep empty office space with a mailbox.

P.S. Yes, I'm sure many of you already knew this.
Reply With Quote
The following 2 users would like to thank Pancakes for this useful post:
  #9  
Old 24.07.2011, 18:30
Guest
 
Posts: n/a
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
The question is this thread's title.
Worms.

Zug is notorious for its infestation by Geldwürmer, microscopic worms which eat bank notes. The banks in Zug find it necessary to fumigate their premises at least four times a year in order to continue their bloodsucking business. Unfortunately, the chemical required for fumigation of the worms is expensive - too expensive for most private citizens to afford. Consequentially, the people in Zug are obliged to keep their money in hermetically sealed ceramic tubs, which are heavy and inconvenient, but at least prevent the worms from eating all their wealth.

The cantonal authorities desperately try to attract rich people and businesses to Zug with their low tax rates. Foreigners, who know no better, are tempted by such carrots, while Swiss people stay well clear.

There's your answer. I didn't attend a business school, but I have several years' experience of life.
Reply With Quote
The following 12 users would like to thank for this useful post:
  #10  
Old 24.07.2011, 18:40
Treverus's Avatar
Forum Legend
 
Join Date: Dec 2007
Location: Work in ZH, live in SZ
Posts: 12,352
Groaned at 363 Times in 293 Posts
Thanked 23,676 Times in 8,569 Posts
Treverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond reputeTreverus has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Because the tax system is not as simple as you think it is. The overall average for a canton says nothing. I pay for example less taxes in the right place in Schwyz than I would anywhere in Zug. (And I am conicidentally looking for someone taking my flat over... so if you are interested in a really good tax bill, let me know)
Additionally are the prices for rents and properties so much higher in the low tax places that the business case does not make sense for all... read those MBA books till the end...
Reply With Quote
This user would like to thank Treverus for this useful post:
  #11  
Old 24.07.2011, 19:36
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
Because the tax system is not as simple as you think it is. The overall average for a canton says nothing. I pay for example less taxes in the right place in Schwyz than I would anywhere in Zug. (And I am conicidentally looking for someone taking my flat over... so if you are interested in a really good tax bill, let me know)
Additionally are the prices for rents and properties so much higher in the low tax places that the business case does not make sense for all... read those MBA books till the end...
What kind of taxes are we talking about in your place in Schwyz? Income taxes? Corporate income taxes? Capital gains taxes?
Reply With Quote
  #12  
Old 24.07.2011, 19:37
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
Because the tax system is not as simple as you think it is. The overall average for a canton says nothing. I pay for example less taxes in the right place in Schwyz than I would anywhere in Zug. (And I am conicidentally looking for someone taking my flat over... so if you are interested in a really good tax bill, let me know)
Additionally are the prices for rents and properties so much higher in the low tax places that the business case does not make sense for all... read those MBA books till the end...
...and what is this right place exactly? (These forums don't allow me to edit posts. Hence this silly addition.)
Reply With Quote
  #13  
Old 24.07.2011, 19:41
Forum Legend
 
Join Date: Dec 2006
Location: Zurich
Posts: 4,940
Groaned at 184 Times in 120 Posts
Thanked 8,599 Times in 2,882 Posts
Kittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Are you trying to establish a business and scrimping on proper advisors?
Reply With Quote
  #14  
Old 24.07.2011, 20:57
Guest
 
Posts: n/a
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Ok, maybe someone should try to give an answer to the question rather than write unhelpful drivel.

The reason why not every company in CH is registered in Zug is because tax law states that you must be registered in the canton where your staff are physically 'located'. If you register in Zug and then open your office in Zurich, then the tax office of Zug may visit you to check your physical presence and find nothing there (except a postbox). In which case you end up in trouble. Of course, they may never visit, and its not really in their interest to expel you to another canton anyway, as they lose the tax revenues. However the authorities where you do have your office may ask some awkward questions, if they ever were to visit. Equally, it looks a bit odd if the registered director lives in (i.e. is registered in) Geneva, but opens an office in Zug. Particularly if its a small company.

So if you follow the rules, you register where you are located. That is what tax law says you must do. But plenty of people figure that the chance of problems isn't so great, and register in Zug anyway. Hence the huge number of postboxes.
Reply With Quote
The following 8 users would like to thank for this useful post:
  #15  
Old 24.07.2011, 21:38
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,801
Groaned at 610 Times in 516 Posts
Thanked 21,726 Times in 11,408 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Well Zug is not necessarily the cheapest.

Did you ever wonder why almost all Swiss rental cars have VD or AI number plates?
Reply With Quote
This user would like to thank marton for this useful post:
  #16  
Old 24.07.2011, 21:55
Captain Greybeard's Avatar
Forum Legend
 
Join Date: Aug 2009
Location: Sarganserland / NW Lower Penin
Posts: 3,516
Groaned at 43 Times in 37 Posts
Thanked 7,410 Times in 2,314 Posts
Captain Greybeard has a reputation beyond reputeCaptain Greybeard has a reputation beyond reputeCaptain Greybeard has a reputation beyond reputeCaptain Greybeard has a reputation beyond reputeCaptain Greybeard has a reputation beyond reputeCaptain Greybeard has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
Equally, it looks a bit odd if the registered director lives in (i.e. is registered in) Timbuktu, but opens an office in Zug.
Fixed that for you.
Reply With Quote
  #17  
Old 24.07.2011, 23:50
HollidayG's Avatar
Forum Legend
 
Join Date: Jan 2008
Location: Kanton Zürich
Posts: 3,038
Groaned at 50 Times in 35 Posts
Thanked 1,180 Times in 738 Posts
HollidayG has an excellent reputationHollidayG has an excellent reputationHollidayG has an excellent reputationHollidayG has an excellent reputation
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Schwyz has the cheapest tax rates, but the train connection is not as good as Zug!
Reply With Quote
This user would like to thank HollidayG for this useful post:
  #18  
Old 25.07.2011, 01:53
Wheat Hoarder's Avatar
Junior Member
 
Join Date: Jul 2011
Location: Sweden
Posts: 40
Groaned at 24 Times in 5 Posts
Thanked 26 Times in 8 Posts
Wheat Hoarder is considered unworthyWheat Hoarder is considered unworthyWheat Hoarder is considered unworthy
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
Schwyz has the cheapest tax rates, but the train connection is not as good as Zug!
How long approx to travel from Zug to Zurich via train? What about Schwyz to Zurich?
Reply With Quote
  #19  
Old 25.07.2011, 02:35
Forum Legend
 
Join Date: Dec 2006
Location: Zurich
Posts: 4,940
Groaned at 184 Times in 120 Posts
Thanked 8,599 Times in 2,882 Posts
Kittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond reputeKittster has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Again:
Quote:
View Post
Are you trying to establish a business and scrimping on proper advisors?
I've never quoted myself before but...
Reply With Quote
This user would like to thank Kittster for this useful post:
  #20  
Old 25.07.2011, 05:58
Carlos R's Avatar
Forum Legend
 
Join Date: Dec 2009
Location: Roundn'about Basel
Posts: 7,231
Groaned at 105 Times in 95 Posts
Thanked 9,934 Times in 4,178 Posts
Carlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond reputeCarlos R has a reputation beyond repute
Re: If Zug is the lowest taxed canton, why don't all businesses simply just move ther

Quote:
View Post
How long approx to travel from Zug to Zurich via train? What about Schwyz to Zurich?
www.sbb.ch

It even comes in English...
Reply With Quote
The following 6 users would like to thank Carlos R for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why is there such a lack of different subcultures amongst the swiss? Oscar Daily life 72 26.02.2012 20:49
Just wondering: why is there a Hotel Sternen in every town? milesaway Other/general 15 20.04.2011 13:52
Is there a move towards less positions where just English is okay? colinwheeler Employment 9 09.02.2011 11:11
The McCann's why don't you just STFU! bigblue2 General off-topic 32 08.11.2010 09:21
Is the word 'Paki' offensive, if so why? simon_ch International affairs/politics 122 17.10.2009 23:57


All times are GMT +2. The time now is 22:55.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2022, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0