In the Canton of Zug, the total regular profit tax for cantonal and municipal tax as well as the directfederal tax together amounts to approximately 12%
According to the Zug Tax Act, cantonal and municipal taxes on income from patentsand comparable rights based on qualifying R&D expenditure can be included in the profit taxassessment base with a reduction of 90%. To benefit from the patent box, the following conditions must be cumulatively met:
1. There must be a patent or comparable right
2. The patent/comparable right must generate profits
3. Sufficient substance (nexus quotient) must be available, i.e. the R&D expenditure must have been carried out by the taxable individual himself, group companies in Switzerland or third parties inSwitzerland and abroad.
Switzerland has concluded agreements with most industrialised countries to avoid double taxation.Such DTAs deal in particular with the following tax issues:
• Exemption of profits from permanent establishments in the partner state
• Reclaiming withholding taxes on dividends
• Taxation of royalties.
The Canton of Zug is one of the most popular areas in which to live and to do business. Formalities and bureaucracy are kept to a minimum: the Zug authorities have an excellent reputation when it comes to dealing with matters quickly and efficiently.The economic success of Zug is based on a long-term development strategy. The Canton of Zug offers the best overall package.The outstanding locational conditions are applicable to everyone. Their core elements are made up of a unique mix of small and large, localand international firms; a closely knit network of service providers, suppliers and private institutions; investment in training, sport and culture; attractive taxes for legal entities and individuals;the availability of an efficient infrastructure and a fascinating living space.