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Economic conditions

Taiwanese Companies Can Expand in Europe through Switzerland

Strategic Insights

— 1 min read

Switzerland has emerged as an attractive location for Taiwanese companies seeking to establish a presence in the European market. According to Willi Meier, CEO of the Greater Zurich Area AG, Switzerland's low taxes, favorable business environment, and academic cooperation opportunities make it an ideal hub for businesses in the high-tech, biotechnology, pharmaceutical, life science, and medical device sectors. Meier emphasized that Switzerland's tax rate is the most favorable in Europe, with a Value Added Tax of 7.6% and a tax on profit ranging from 20% to 25%. He also highlighted the country's flexible labor regulations and its close relations with European countries, which facilitate the transportation of goods and personnel recruitment.

Key Takeaways:

  • The Greater Zurich Area AG is a Swiss supra-regional non-profit organization that targets Taiwanese companies with high-tech, biotechnology, pharmaceutical, life science, and medical device businesses to set up headquarters in Switzerland.
  • Switzerland offers a favorable tax environment, with a Value Added Tax of 7.6% and a tax on profit ranging from 20% to 25%.
  • Companies can enjoy a tax rate as low as 7.6% if more than 80% of their product is exported from Switzerland.
  • Taiwanese companies can benefit from academic cooperation with the Swiss Federal Institute of Technology and other universities in research and development for their products.
  • Swiss universities are willing to cooperate with Taiwanese companies in the IT sector.
  • Switzerland's good quality of life and attractive environment have successfully attracted companies like Google to set up R&D centers in Zurich.

Statistics:

  • 7.6%: Value Added Tax in Switzerland (compared to 14% to 25% in other European countries)
  • 20% to 25%: Tax on profit in Switzerland (compared to 35% to 45% in the rest of Europe)
  • $80%: Threshold for companies to enjoy a 7.6% tax rate if more than 80% of their product is exported from Switzerland
  • 5 to 6: Number of Taiwanese high-tech companies currently operating in Switzerland
  • 1028: Release number of the CNA article

Sources:

  • CNA (Taipei News Agency)
  • Greater Zurich Area AG

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