Grand Rapids, MI -- (SBWire) -- 06/24/2010 -- As the rest of Europe reels from contributions to bail Greece out of its recent financial woes, some cantons in Switzerland are courting and winning over companies seeking corporate tax breaks. Noted financial advisor Dennis Tubbergen, CEO of USA Wealth Management, LLC, believes this practice could threaten other European countries as they attempt to make up for monies given in Greek aid.
A fiscal surplus was reported by Switzerland last year. Consequently, many cantons are lowering taxes.
“The top corporate tax rates in Switzerland, depending on where you are located in the country, range from 11.8% to 24.2%,” noted Tubbergen. “That’s compared to a top corporate tax rate of 28% in the UK and 35% in the United States. So, a company could leave the United States for the country of Switzerland, choose its location carefully, and reduce its’ corporate taxes by up to two-thirds. And that’s before the Swiss cantons start to play ‘Let’s Make a Deal’ with regard to tax hikes.”
Tubbergen states that according to the International Tax Consultants, only the countries of Geurnsey and Moldova have lower corporate tax rates than Switzerland. Yet, he reminds us, Switzerland enjoys budget surpluses while other European countries face debt crises with higher corporate tax rates in place.
“Now, the country is taking advantage of it financial responsibility and solvency by attracting new businesses to add to its tax base,” admires Tubbergen. “One of my first personal finance mentors was right – it’s not what you take in, it’s what you spend – a fact that is true at any level of finance.”
Although the Swiss have a Value Added Tax (as does most of Europe), the rate is among the lowest in Europe.
“Given the new taxes that are being discussed in Washington now, many of which would adversely affect business and jobs, I wonder if anyone there is paying attention to these facts?” asks Tubbergen.
For more information on Tubbergen’s views, visit http://www.dennistubbergen.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.
Will Europe’s Economic Recovery Be Undermined by Switzerland
Noted financial advisor Dennis Tubbergen takes a look at Switzerland's corporate tax breaks and the country's economy.