Welcome. Zug: small world - big business

Transcription

1 Welcome Zug: small world - big business

2 Zug: small world - big business 2

3 Zug: small world - big business In the heart of Europe and in the economic center of Switzerland 124,000 inhabitants from 131 different nations 109,000 workplaces (of which 38,400 commuting in) 32,000 companies Outstanding economic development over the past decades Page 3

4 In the heart of Europe - in the middle of Switzerland Part of the Greater Zurich Area Access to EU Market with 700 million consumers North-south axis Gotthard (rail and road) 4

5 Selection of int'l companies - mainly HQs 5

6 Highly diversified industries Commodity trading Wholesale / distribution of brands Life science (Pharma / Biotech / Med Tech) High Tech Industry Information and communication technology (ICT) Financial services (PE/Family Offices/Fintech) Sports articles / Sports marketing Corporate functions: Full headquarters Procurement / Supply Chain / IP Page 6

7 Dynamics and traditional values Page 7

8 Zug: a worldwide leading business location

9 Credit Suisse Location Quality Indicator 2017 Criteria: Tax rates for individuals and corporations General level of education Availability of highly qualified manpower Transport-system based accessibility Source: Credit Suisse Group

10 UBS Competitiveness Indicator Switzerland 2016 Criteria: Economic structure Innovation Human capital Labor market Accessibility Commuter belt 73.0% 60,553 Price structure Public finance Source: UBS March

11 fdi Europe business location ranking 2016/17 Zug ranked 2nd: Small European Regions of the Future #2 economic potential, #2 business friendliness, #3 human capital and lifestyle Zug ranked 4th: Western European Regions of the Future Zug ranked 6th: European Regions of the Future Source: Page 11

12 The best overall package Stability Accessibility Business friendliness Taxation Internationality Talents/ Education Quality of life Effective business environment 13

13 Zug: leading in political and economic stability

14 Politically stable For many decades about 75 % conservative voters 6 out of 7 ministers are member of a conservative party Multiparty political system = long-standing tradition and stability Matthias Michel, Minister of Economic Affairs (VD), Canton of Zug Page 14

15 Revenue surplus / income gap 2060 Revenue surplus / income gap 2060 Tax rates and public financing sustainability NO 10 8 OW Zug #1 internationally and in CH 6 UR 4 HU BS HU ZG SH ZG NW IT UR NW SH ZH 2 ZH SG GE BE LU GE SZ GR DE AR SZ 0 BE DK OW LU SG GL GR SE DE GL AR PL UK -2 PL TG AT AT FK FK CZ LUX -4 CZ LUX TG SK FI ES SK -6 SL NL NL BEL -8 IR -10 NO Swiss cantons European countries Zug #1 internationally BS and in CH IT DK SE UK FI SL ES BEL IR BAK Taxation Index Corporations BAK Taxation Index Highly Qualified Individuals 2013 X-axis: Effective average taxes for highly qualified individuals / corporations Y-axis: Long-term revenue surplus/shortfall as a percentage of GDP The X-axis intersects the Y-axis at the average taxe rate of BAK taxation index (41.9% highly qualified individuals / 27.8% corporations) Source: BAKBASEL, ZEW 15

16 Zug: high availability of talents

17 Magnet for international talents Access to largest talent pool of approximately 1 mio. in Greater Zurich Area and Central Switzerland Access to over 100 mio. European talents Global top specialists Worldwide leading universities and research institutes are located in the area Zurich/Zug/Lucerne (e.g. Swiss Federal Institute of Technology Zurich ranked 9th best university in the world, World University Ranking 2015) Page 17

18 High percentage of highly qualified talents Persons holding a university degree Source: Bundesamt für Statistik, Geostat, Credit Suisse 18

19 Access due to central location in Europe and Switzerland Short commuting distances within Switzerland Zurich Airport: Switzerland's gateway to the world By air: Total: commute to Zug 35,400 commute out of Zug 17,700 Direct rail and road connections to all European Cities Source: microcensus mobility and traffic; BFS

20 World-renowned research & knowledge location Zug Institute of Financial Services Zug (HSLU) From 2016 School of Information Technology (HSLU) Institute for Knowledge, Energy and Raw Materials Zug (WERZ) Zurich Swiss Federal Institute of Technology Zurich (ETHZ) (20 min from Zug) University of Zurich (UZH) Lucerne University of Lucerne (20 min from Zug) University of Applied Sciences Lucerne (HSLU) Page 20

21 Labor market efficiency Criteria: Redundancy costs Hiring & firing Cooperation in labor-employer relations Flexibility in wage determination Ease of finding skilled employment Easye of hiring foreign labor Pay and productivity Reliance on professional management Female participation in labor force Male participation in labor force Salary tax wedge Selection of countries Source: Global Competitiveness Report , World Economic Forum 21

22 Zug: highest quality of life

23 Quality of life «The Canton of Zug offers our employees a quality of life that is unrivalled: a fantastic transportation infrastructure, clean environment and a hub for innovation all set against awe-inspiring landscape. This made our decision to establish our office in Zug an easy one!» Dieter Schulze, CEO SABMiller Europe AG Page 23

24 International community People from 131 different nations live in the canton (total: 32,977). By continents: Europe 88 %, Asia 5 %, America 4 %, Africa 2 %, Australia 1 % Top 12 nations in percent: 20.34% Germany Italy 32.35% United Kingdom Portugal Kosovo Serbia 9.33% Turkey Spain Bosnia 2.63% 6.61% Netherlands Austria 2.68% 2.75% 2.98% 3.13% 3.20% 3.70% 4.12% 6.17% France other Source: Fachstelle Statistik Zug,

25 Integration of internationals Info material & news Newcomer set (English) and The Zug Post Migration Advisory Office English-speaking authorities Relocation agencies Service & international clubs Various events Page 25

26 International Schools International School of Zug and Luzern Walterswil/Baar Riverside Campus, Hünenberg Institut Montana, Zug/Zugerberg International School of Central Switzerland, Cham SIS Swiss International School, Rotkreuz Four Forest Bilingual International School, Cham Page 26

27 Health Care System Cantonal hospital in Baar (Zuger Kantonsspital) Private Andreas Clinic Cham (Hirslanden Group) Nursing homes Home healthcare support (Spitex) Many more hospitals in Zurich and Lucerne Page 27

28 Zug city trains Access to city center from all communities within max.15 min Alpenblick Zürich Steinhausen Rigiblick 20 min to Zurich (half hour interval) min to Zurich Airport (half hour interval) Baar Neufeld Zürich Lindenpark Zythus Cham Chämleten Chollermüli Schutzengel Postplatz Casino Zug 20 min to Luzern ( half hour interval) Fridbach Oberwil Luzern Rotkreuz connections per hour and direction Hörndli Walchwil Arth-Goldau, Erstfeld 28

29 140 Crime statistics Datenreihen1 Number of criminal charges per 1000 inhabitants 0 Source: Swiss Federal Statistical Office

30 Zug: effective business environment

31 The spirit of Zug: friendly and efficient Our Economic Promotion team is a "one-stop-shop" caring for companies located in Zug and supporting those interested in moving here, actively develops solutions for industry needs, provides answers to your questions: solution-minded and fast, offers a unique set of supporting material, acts as a long-term partner to support you in your growth. All our services are free of charge.

32 Business infrastructure Business support services 280 advocates 300 fiduciaries (90 organized in Fiduciary Association of Zug) > 10 banks (also providing all international services) Business premises High availability of top office space on prime locations at reasonable prices. Price range depending on location (CHF to CHF per m2 and year) Business centers 14 business centers in the canton 32

33 Zug: highly attractive tax environment

34 International tax comparison coporate profit tax Maximum tax levy on corporate profit 0% 10% 20% 30% 40% 50% Zug (privileged) 8.6/9.6% Zug (ordinary) 14.6% Switzerland 17.8% Ireland 12.5% Great Britain 20.0% Netherlands 25.0% China 25.0% Luxembourg 29.2% Germany 29.7% Japan 32.3% India 34.6% U.S.A. 40.0% Source: KPMG (2016) Corporate Tax Rates Table & Swiss Tax Report (2016) 34

35 Development international corporate profit tax Maximum tax levy on corporate profit Source: KPMG (2015) Corporate Tax Rates Table 35

36 Corporate profit taxation effective tax rates (% on pre-tax profit) 14.57% 8.56% 9.62% 7.83% 8.9% after tax rates (published) cantonal & municipal 0.9% 2.2% 8.5% 8.5% 8.5% 8.5% federal tax status ordinary mixed (~ up to 5 FTE, no Swiss income, shareholders abroad) mixed (~ more than 30 FTE, no Swiss income) Holding (holding participations, 2/3 of income / assets out of participations) Source: Kantonale Steuerverwaltung Zug 36

37 Tax proposal 17 Federal: Federal Council's message to the Federal Parliament (Spring 2018) Canton of Zug: consultation process (April to July 2018), canton council (first semester 2019) Measures for implementation presumably per January 1, 2020: uniform profit tax rate (Canton of Zug: 12%) patent box (Canton of Zug: tax relief of 90%) tax privilege in the cantons for earnings from intellectual property (Canton of Zug: additional deductions of 50% for R&D costs) maximum tax relief of the patent box's profit and deduction for research and development: 70%. increase of dividend taxation (Canton of Zug: from 50% to 70%) step-up: tax-neutral disclosure of hidden reserves flat-rate tax credit for Swiss permanent establishments of foreign companies. Seite 37

38 Intercantonal tax comparison Corporate entities Nidwalden Zug Appenzell AR Appenzell AI Luzern Obwalden Uri Aarau Schwyz Neuenburg Thurgau St. Gallen Wallis Solothurn Schaffhausen Glarus Bern Basel BL Graubünden Waadt Zürich Freiburg Tessin Jura Genf Basel BS 8'574 9'330 10'404 10'984 11'304 12'304 12'488 12'625 12'910 13'500 14'922 16'608 16'686 17'543 18'105 18'273 20'898 21'640 Example Joint-stock company equity of CHF 2 mio. Net profit CHF 160, Total cantonal, municipal and church tax (+direct federal tax approx. CHF 11,790) 24'076 24'750 26'060 26'212 27'314 28'686 29'679 30' '000 10'000 15'000 20'000 25'000 30'000 35'000 Source: Eidgenössische Steuerverwaltung,

39 International tax comparison Maximum individual tax Zug 23% India 34% USA 40% Luxembourg Germany Great Britain China 44% 45% 45% 45% Ireland 48% Japan Netherlands 51% 52% 0% 10% 20% 30% 40% 50% 60% Source: KPMG's Swiss Tax Report

40 Intercantonal tax comparison Private individuals Zug Wallis Schwyz Nidwalden Zürich Appenzell AI Uri Genf Obwalden Tessin Graubünden Aargau Luzern Thurgau Glarus Schaffhausen Freiburg St. Gallen Appenzell AR Basel BL Bern Waadt Basel BS Solothurn Jura Neuenburg 3'277 11'050 11'087 11'837 11'839 11'842 12'402 12'487 12'655 12'957 13'163 13'304 13'562 13'896 14'611 14'640 Example Married person with two children Gross income CHF 150, Total cantonal, municipal and church tax (+ direct federal tax CHF 1,948) 16'016 16'591 16'690 16'841 17'676 17'715 17'904 18'600 18'961 19' '000 4'000 6'000 8'000 10'000 12'000 14'000 16'000 18'000 20'000 Source: Eidgenössische Steuerverwaltung,

41 Effective tax burden of companies Taxation index on companies and highly qualified manpower 45% Zug #1 in CH and #4 US 40% IN 35% JP FRA international BR 30% DE 5% 15% 25% 35% ES 45% 55% 65% BEL 25% LUX CN NO AT GE NL BS 20% UK DK RU FI SE SK VS ZH BL PL BE VD SGP CZ Ø TI CH SI SG 15% GL SH IE TG ZG UR SZ GR OW HU HK NW LU AR 10% 5% Effective average tax rate (single, EUR 100,000) Source: BAK l Economics AG, Centre for European Economic Research,

42 Genuine quality of life Page 42

43 Contact information Department of Economic Affairs Economic Promotion Aabachstrasse 5 CH Zug Phone +41 (0) Mail economy@zg.ch Internet Page 43