The Irish Times rather dumb article on Swiss taxation of companies

Impetus

The Irish Times published an article entitled

“Switzerland fights to maintain tax allure as referendum looms
Proposals to cut multinational tax benefit and reduce regional taxes prompt plebiscite”

There are differences between Ireland and Switzerland. These include:

1. Switzerland does not need foreign multi-nationals. The country is stuffed with Swiss owned multi-nationals who generate about $50bn in trade surplus PA for the Swiss economy.

2. While Switzerland has low corporate income tax rates (they vary by canton), unlike Ireland, Switzerland also has low personal income tax rates. In most cantons people earning EUR 200’000 pa typically pay less than 20%.

3. Swiss residents have more to spend because of the low income taxes mentioned in 2 above and the 8% VAT rate (which is their highest). This VAT rate also includes cars – ie there is no 'VRT'.

4. Interest rates in Switzerland are extremely low and people can borrow easily.

Switzerland doesn’t need foreign multi-nationals and their tax games, because it is a functioning, entrepreneurial society, with the best technology education in Europe, and with efficient government which is federal – ie all decision making is pushed down to the lowest level.

The Irish Times article makes it sound as if Switzerland is similar to Ireland in terms of need for multi-nationals. Nothing could be further from the truth.

Even in terms of small domestic agri business – Switzerland’s is mountainous. Only 7% of the land is suitable for crop growth. Yet Switzerland has the largest food processor in the world – Nestlié – much of whose product output depends on dairy products.

It is easy to shop online in Switzerland - unlike dozy Ireland. When you email somebody they answer one typically within minutes. Not days or never, a la Ireland.

http://www.irishtimes.com/business/economy/switzerland-fights-to-maintain-tax-allure-as-referendum-looms-1.2926819