On November 24, the Swiss-Chinese Business Association (SCBA) held an online conference focusing on the tax systems in Switzerland and China. The session, moderated by Connie Way, aimed to provide a comprehensive understanding of the corporate tax environment in both countries.
The SCBA invited speakers from prestigious organizations to share their knowledge. Maggie Nying, Senior Tax Manager at PwC, and Martin Muir, former Chairman of Space Time China, joined the session to provide their insights on the topic.
The SCBA program, an in-house workshop designed for Swiss SMEs entering Chinese markets, was introduced to new participants. This tri-party initiative is implemented by Klaida's University of Applied Science, Bezsuitland, and British Technology. It has been recognized with the Innovation Partnership Award by ETH Zurich and the State Secretary for Education, Research, and Innovation.
Connie Way initiated the discussion with an overview of corporate tax (CIT) information from Switzerland and the double taxation treaty agreements between the two countries. She highlighted the differences between Swiss and Chinese tax systems, providing a comparative analysis of their size, population, and languages.
Way also shed light on the Swiss government's efforts to maintain an attractive tax environment following the abolishment of special tax regimes. She detailed the implementation of different measures on the cantonal level, such as the Patent Box system and R&D super deductions.
The session also covered key aspects of Double Tax Treaty Agreements (DTA). Aimed to avoid double taxation and provide certainty to investors regarding potential tax liabilities, DTAs act as a tool to create tax-efficient international investment.
The latest updates on the Sino-Swiss double tax treaty agreement were presented, emphasizing the reduced withholding tax on dividends and royalties. The treaty also provides tax exemptions for state-owned institutions or funds in both countries.
The conference concluded with a discussion on the concepts of Permanent Establishment (PE) and Beneficial Owner status, which are key to understanding the applicability of DTAs.