Greater Zurich Area AG, May 2013: Finance Branch 1

Switzerland and the Greater Zurich Area provide a

unique blend of top-notch infrastructure, knowledge

base, talent pool, liberal legal framework and adminis-

trative efficiency. There is virtually no industry and no

service sector that would not be well advised to consider

the Greater Zurich Area as a main pillar for their EMEA

or global operations.

With emphasis on high value creation rather than vol-

ume, corporate structures focusing on central manage-

ment and headquarters functions in a low-tax environ-

ment make the Greater Zurich Area a prime destination

for sophisticated operations and services.

Management of corporate finances:

Swiss finance branch

Zurich is one of the most important centers of finan-

cial services, and a global leader in private banking and

wealth management. Zurich has also established itself

as a leading-edge location for suppliers to the finance

industry, making it a veritable center of gravity for tech-

nological and industrial solution providers in the finan-

cial sector.

Adding Value: Management of Corporate Finances in the Greater Zurich Area

If your operations include group finance activities such as

granting loans, hedging, cash pooling and management,

factoring, leasing or In-House Banking solutions1), and if

you achieve a minimum capitalization of approximately

CHF 100 million, the Greater Zurich Area is the place to

set up a Swiss finance branch to manage your corporate

finances.

The Swiss finance branch is a company structure that

serves a company’s head office in a country outside

Switzerland. In Europe, head offices are routinely located

in Austria, Hungary, Poland, Iceland and Luxembourg.

Its main goal is a fiscally intelligent distribution of com-

pany funds, debts and interests between head office

and Swiss finance branch.

A Swiss finance branch that is funded either by

equity or by debt benefits from special tax rulings by

both the Swiss federal and cantonal tax authorities.

Under the ruling, the Swiss branch receives a notional

interest deduction on any interest earned from the

granting of loans to group companies or third parties.

Managing your corporate finances in a Swiss finance

branch leads to a stark reduction of the financing costs,

a deferral of income taxation, and the generation of

low-taxed interest income for foreign tax credit purposes.

A prime example of value added operations in the Greater Zurich Area is the manage-ment of global corporate finances with a Swiss finance branch.

1) See article “Swiss In-House Banking“, Greater Zurich Area AG’s Insight 1/07

Have we sparked your interest?

Would you like to get to know your options in the Greater Zurich Area in more detail?

If yes, please contact your nearest Greater Zurich Area representative for more information.

We are happy to assist you in every aspect of expanding your business to the Greater Zurich Area!

Benefits of setting up a finance branch

in the Greater Zurich Area

• Efficient and state-of-the-art management of financial

services.

• Tap into the vast knowledge and talent pools of the global

financial center Zurich.

• Deemed interest deductions of 91%.

• Minimum effective tax rate of 1 to 2% in Switzerland.

• Combined tax burden of 3% for foreign head office and

Swiss Finance Branch.

• No withholding tax.

• No stamp duty.

• Advance tax ruling within 2 to 6 weeks.

The Swiss tax authorities may also accept the finance branch re-

gime in relation to finance companies. For finance companies,

the extensive Swiss treaty network applies and the overall tax

rate achieved may even be below 2%. However, a minimum

balance sheet total of CHF 500 to 1,000 million is required.

The finance branch regime is well tested, easy to implement and

to administrate, and the same holds true for the application of

the regime to a finance company.

Your Swiss finance branch regime can be set up to achieve a combined tax burden of approx. 3% for a foreign head office and the Swiss finance branch.

Please contact your local agent of the Greater Zurich Area AG to learn more details about a Swiss Finance Branch in the Greater Zurich Area. Let us help you to identify and address the specifics and individual needs of your Swiss finance operations.

Greater Zurich Area AG, May 2013: Finance Branch 2

SwiTzErlANDGreater Zurich Area AGlimmatquai 1228001 Zürich / SwitzerlandPhone +41 44 254 59 59Fax +41 44 254 59 54info@greaterzuricharea.chwww.greaterzuricharea.ch

USAGreater Zurich Area Inc. swissnex building 730 Montgomery Street San Francisco, CA 94111 / USA Phone +1 415 912 5909

CHiNAJianping Gao Representative China Phone +86 21 6149 8208