The lowering of the corporation rate tax means that Swiss companies have to pay less taxes; the highest marginal progressive tax rate has been reduced from 35% to a flat rate of 21%.
At the same time, Swiss companies can benefit indirectly from this tax cut, as American companies will have more money to spend thanks to this change; demand for goods and services is expected to increase.
BEAT tax is a sticking point
However, the new tax reform in the US is also presents some stumbling blocks, one of which is the new base erosion and anti-abuse tax (BEAT). This tax may fall due on interest, royalties or administration fees, among other things. There is thus a risk that these amounts will be taxed twice: once through the subsidiary in the form of the BEAT tax, and again through the parent company in the form of Swiss income tax.
Most SMEs should not be affected, however, as the tax will only affect listed companies and large private companies. Nevertheless, all companies should make sure that they are appropriately informed.
The US is becoming more attractive
All things considered, the tax reform has made the US more attractive for Swiss SMEs. You should therefore get to grips with the details and profit from the advantages; it is relevant here whether a Swiss SME exports to the US or has a local presence there.
A detailed overview of the US tax reform and the implications for Swiss SMEs can be found in the report, which you can download at the end of the article.
Do you have questions about exporting to the USA? Contact our advisor for North America, Annina Bosshard, or take part in a free consultation session. Register now
