The Swiss franc is the currency of Switzerland and Liechtenstein. The international currency designation is CHF (from Confederatio Helvetica, the Roman name for Switzerland). Code according to ISO 4217 CHF, or 756. Indicated by the symbols Fr, sFr. In Switzerland itself, the designation of the franc is Fr or sometimes SwF.

Switzerland is divided into 4 language regions: German, French, Italian and Romansh. Therefore, banknotes are signed in the listed languages: on the front side of the banknote there are inscriptions in German and Romansh, and on the back - in French and Italian. The name of the currency is written as follows:
- franken (in German);
- franc (in French and Romansh languages);
- franco (in Italian).

The name of the Swiss national currency is borrowed from France, which is explained by the long political and economic influence of its neighbor on Switzerland in the Middle Ages. However, today in Europe only the Swiss currency is called the franc.

One Swiss franc is equal to 100 centimes (in French), in German they are called rappen, in Romansh - rapami, in Italian - centesimo. In cash circulation there are coins in denominations of 1 (discontinued in 2006), 2 (discontinued in 1974), 5, 10 and 20 centimes, 1/2, 1, 2 and 5 Swiss francs, banknotes 10, 20, 50 , 100, 200 and 1000 Swiss francs.

The Swiss economy ranks 19th among the world's largest economies. Although its economy is relatively small, Switzerland is one of the richest countries in the world in terms of GDP per capita. It is a prosperous and technologically advanced country, more stable than larger countries. Switzerland's prosperity is due mainly to its technological expertise in manufacturing, tourism and banking. The country is the world's largest destination for offshore capital. This has created a large and highly developed banking and insurance sector, employing over 50% of the population and generating over 70% of total GDP.

HISTORY OF THE SWISS FRANC

The Swiss franc was first introduced as the currency of the Helvetic Republic in 1798. However, already in 1803, due to the liquidation of the republic, its production was discontinued.

Until 1850, more than 75 different institutions were involved in the production of coins in Switzerland, including 25 cantons and half-cantons, 16 cities, and abbeys. There were about 860 types of different coins in circulation, of varying values ​​and denominations.

The new constitution of 1848 stipulated that the new Federal Government would be the only institution in Switzerland to issue money. Two years later, the federal law on the monetary system was adopted, adopted by the Federal Assembly on May 7, 1850, which decided that the franc is the monetary unit of Switzerland.

The modern Swiss franc appeared in 1850 and was equal in nominal value to the French franc.

In 1865, France, Belgium, Italy and Switzerland united in the Latin Monetary Union and agreed to exchange their national currencies at the ratio of 4.5 grams of silver for 0.290322 grams of gold. Even after the monetary union lost its strength in the 1920s and ended in 1927, Switzerland maintained this relationship until 1967.

In 1907, Switzerland created its own National Bank, which was entrusted with a monopoly on the production of money.

With the outbreak of World War I, many countries, Switzerland among them, retreated from the gold standard, seeking to cover military costs using the printing press, despite the inflationary risk that the enterprise posed. However, immediately after the war, Switzerland, along with other small European countries, avoided a crisis of hyperinflation by deciding to quickly return to the gold standard and currency parity of 1914. Even before the end of the First World War, in 1918, the Swiss National Bank was the first in Europe to increase its discount rate.

During its entire existence, the devaluation of the Swiss franc occurred only once; it happened in 1936, and in a rather small amount, only 30%. The reason for this event was the economic crisis in the United States of America.

A significant strengthening of the Swiss franc occurred during the Second World War, as the country's financial institutions were not damaged during the hostilities, and its banks were used as storage for gold and foreign exchange reserves by some warring countries.

In 1945, Switzerland joined the Bretton Woods currency system and thus the franc became pegged to the US dollar. The franc exchange rate was set at 4.30521 per dollar, which was equal to 0.206418 grams of pure gold.

The Bretton Woods system was replaced in 1967 by the Jamaican currency system, which allowed the dollar to float freely. In conditions of economic instability, Switzerland, following the United States and Japan, is also introducing a floating exchange rate.

The Swiss franc traditionally belongs to the currencies of offshore zones, with zero inflation and legally established gold and foreign exchange reserves of at least 40%. However, this link to gold, introduced in the 1920s, was abolished on May 1, 2000 due to amendments to the Swiss Constitution.

The first series of Swiss francs was issued in 1907. When issuing this series, old banknotes of the cantons were often used, to which inscriptions were simply added and a red rosette with a Swiss cross was printed.

Second series of Swiss francs from 1911. The banknotes were issued between 1911 and 1914, and were withdrawn from circulation in 1956 and 1957. The 5 franc note was in circulation until 1980.

The third episode was only partially released. Several denominations (100, 20) were introduced in several versions in 1918. The rest were not put into circulation at all.

The fourth series of Swiss francs was issued in 1938. However, the banknotes were never put into circulation and became a reserve series.

Fifth series of Swiss francs 1954 - 1961. For the first time in the history of Swiss bonistics, the banknotes of this series formed a thematic and formal unity - the portrait on the front side and the design motifs on the reverse side were interconnected historically and thematically.

Sixth series of Swiss francs from 1976 to 1979. At the end of the sixties of the last century, the Swiss National Bank completely revised its policy in the field of design and production of banknotes. He took charge of the planning and production of banknotes. The design of this series of francs is fundamentally different from the design of previous series - portraits of historical figures of Switzerland were introduced on the obverses of the banknotes.

Seventh (reserve) series of Swiss francs produced in 1983 - 1985. Banknotes of this series were never put into circulation; the series became a reserve series.

Eighth series of Swiss francs 1994 - 1998. In selecting the historical figures featured on the banknotes in this series, the Swiss National Bank was guided by consideration of interdisciplinary art forms: architecture, music, literature, poetry, and taking into account the linguistic and cultural diversity in Switzerland. Graphic artist who designed the banknotes of the eighth series: Jörg Zintzmeyer. Banknotes in this series were printed in Zurich at the Orell Fussli factory.

In 2005, the Swiss National Bank held a competition to determine the design of the ninth series of banknotes. The competition was won by Manuel Krebs, but his projects, which include descriptions of blood cells and embryos, were met with enough opposition from the general public to dissuade the bank from moving forward with them. As a result, the ninth series of Swiss franc banknotes will be based on the designs of second place finalist Manuela Pfrunder.

Initially, the new banknotes were supposed to go into circulation in 2010, but then the deadline was postponed several times. The National Bank attributes the delay to “unexpected technical problems,” which may be related to the production of special paper.

Representatives of the Swiss National Bank assure that the new paper francs will be released in 2016, but it is possible that there will be another delay, as has happened several times already.

Reserve currency

The Swiss franc is a freely convertible currency, included in the CLS (Continuous Linked Settlement) list - an international system for settlements on conversion transactions, operating for member countries of the International Monetary Fund (IMF).

The Swiss franc is unofficially recognized as a key reserve currency along with the US dollar, euro, pound sterling and Japanese yen. But, as a rule, the share of all foreign exchange reserves in Swiss francs does not exceed 0.3%.

The Swiss National Bank (SNB) is the central bank of Switzerland. It is a completely independent central bank with a three-member committee responsible for setting monetary policy. The bank issues banknotes, regulates the volume of money circulation and loans, and organizes non-cash payments. The Swiss National Bank is the only financial institution that issues the national currency.

Switzerland is the fourth largest official custodian of gold in the world. Previously, the Swiss constitution included a provision requiring that the country's currency be backed by 40% of its gold reserves. Despite the repeal of this provision, the link between gold and the Swiss franc is deeply ingrained in the minds of Swiss investors. As a result, the Swiss franc has an almost 80% positive correlation with gold. If the price of gold rises, then there is a high probability that the Swiss franc will also rise. Additionally, since gold is seen as the ultimate form of safe haven money, gold and the Swiss franc benefit during times of global economic and geopolitical uncertainty.

The popularity of CHF on the Forex exchange is due to the low discount rate of this currency, so it is used mainly for carry trade transactions and for hedging when insuring risks. CHF ranks 5th among the world's most traded currencies. The Swiss franc is very sensitive to events taking place in the euro area. For forex trading, the currency pairs CHF/JPY, EUR/CHF and USD/CHF are mainly used. Transactions in this currency account for about 5% of the total turnover of the forex market.

MODERN SWISS FRANC BANKNOTES
(8th episode of release)

The banknotes have a rather original design and a horizontal arrangement of portraits, drawings and digital denominations on both the obverse and the reverse. The obverse of Swiss banknotes features stylized portraits of the country's leading artists.

10 Swiss francs. Size: 74x126 mm. Colors: brown-orange, blue.

Obverse: portrait of the Swiss artist and architect Le Corbusier (1887-1965). French architect born in Switzerland and famous for his innovative introductions to architecture and construction.

Reverse: image of the Palace of Justice in Chandigarh, facade of the Modulor secretariat building. In circulation since April 8, 1997.

20 Swiss francs. Size: 74x137 mm. Colors: red-violet on a multi-color background.

Obverse: portrait of the Swiss composer Arthur Honegger (1892-1955), whose name is given to the conservatory in Le Havre (France).

Reverse: locomotive, fragment of musical notation of Honegger's work "Pacific 231". Put into circulation on October 1, 1996.

50 Swiss francs. Size: 74x148 mm. Colors: Olive green and purple on a multi-color background.

Obverse: portrait of the Swiss artist and sculptor Sophie Taeuber-Arp (1889-1943).

100 Swiss francs. Size: 74x159 mm. Colors: Blue and purple on a multi-color background.

Obverse: portrait of the Swiss sculptor and artist Alberto Giacometti (1901-1966), a street in the city of Cure is named after him.

Reverse: works by Giacometti "Lotar II", "Homme Qui Marche". Put into circulation on October 1, 1998.

200 Swiss francs. Size: 74x170 mm. Colors: brown and purple on a multi-color background.

Obverse: portrait of the Swiss writer Charles Ferdinand Ramuz (1878-1947). Many places in Switzerland are named after him, and there is also the Ramu Foundation, on whose behalf prizes are awarded.

1000 Swiss francs. Size: 74x181 mm. Colors: purple and violet on a multicolor background.

Obverse: portrait of the Swiss historian Jacob Burckhardt (1818-1897).

Swiss francs have excellent protection against counterfeiting. Since 1976 and until now, no attempts to forge them have been recorded. The banknotes are designed in a rather rich style with many small details and distinctive features. In addition, there is a whole range of fairly common means of protection against counterfeiting. The Swiss franc is one of the most protected currencies.

In the near future, the country intends to change the design of banknotes and increase the degree of security. There are already options for a new design, perhaps more attractive than the current one.

Coins

All Swiss coins have a regular round radial shape. Coins in denominations of 5 rapens are minted from an aluminum-nickel-copper alloy, and coins of all other denominations are minted from an alloy of copper and nickel. On the reverse of coins in denominations of 5, 10 and 20 rapens (centimes) the profile of the head of the statue of the Roman goddess of freedom Libertas is minted, in denominations of 0.5 francs, 1 franc and 2 francs - a statue of the Roman goddess of freedom Libertas with the national symbols of Switzerland, and in denominations of 5 Franks - a portrait of the Swiss national hero William Tell. The reverse of Swiss coins features their digital denomination and the year of issue in the center, which is framed by a wreath of either oak or grape branches.

Rapena coins are made with a smooth edge and only half a franc and higher with a ribbed edge. On the 5 franc denomination, in addition to the ribbed edge, there is the inscription “DOMINUS PROVIDEBIT” and thirteen stars.

The federal mint produces coins. In addition to banknotes for simple circulation, it issues commemorative coins containing precious metals or bimetallic ones and depicting national treasures and important events. For commemorative coins, only denominations of 10, 20 and 50 francs are used.

Note to tourists

Guests and tourists arriving in Switzerland and Liechtenstein can exchange their currency for Swiss francs without any quantity restrictions in the branches of numerous national and foreign banks, which are located almost everywhere, both in large cities and tourism centers. There is no government tax on exchange in either Switzerland or Liechtenstein. It is also possible to export Swiss currency outside the countries of the customs union without limiting its quantity, since it is freely convertible.

Stores generally accept francs, but prices are often written in euros (for the convenience of tourists). You may be refused to pay for purchases using euros, although many stores also accept euros. In stores you can also pay using Visa and Mastercard.

In Switzerland, the exchange rate is higher than abroad, so it is better to exchange money in your own country. Currency can also be exchanged at the airport, exchange offices, train station or bank. The hotel usually has the most unfavorable exchange rate. When purchasing tickets for trains and buses, the ATM does not accept paper money or 5-rappen coins. The maximum withdrawal amount at an ATM is up to 1000 francs.

Switzerland is one of the most respectable financial centers in Europe. Switzerland is beyond military, political and racial conflicts. The shocks of the twentieth century did not affect its political and economic sovereignty. Political stability and economic prosperity have made Switzerland attractive to wealthy people in other countries. More than 10% of its permanent residents are foreigners. Bank deposits flock here from all over the world. Switzerland is a transit point for international financial flows.

The Swiss banking system is one of the first in the world in terms of confidentiality of bank deposits. However, Switzerland's reputation in this area has recently become somewhat ambivalent. Its authorities have been subject to harsh international criticism for "dormant" deposits held in Swiss banks since the Second World War. Swiss banks still keep financial secrets from this era. Swiss firms are widely used in a variety of tax and financial planning schemes.

Taxation in Switzerland is generally in line with international standards. The federal tax in Switzerland is only 9.8%, and in some cases local taxes are waived.

Switzerland is a confederation. It consists of 26 cantons - small sovereign entities, each of which has its own tax legislation. This circumstance explains the peculiarities of the tax system of the confederation as a whole. Tax liability is divided into three parts - federal, cantonal and local. This makes it difficult to get to know the Swiss tax system, but makes possible a number of promising international tax schemes.

Federal tax is levied on a progressive scale and ranges from 3.63 to 9.8%. Cantonal taxes are significantly higher. They make up 20-30%. To this should be added municipal taxes. An essential element of the Swiss tax system is the 0.8% wealth tax. It is collected at the federal and, in some cases, at the local level. The withholding tax in Switzerland is 35%. This means that 35% of all dividends distributed to a company with which Switzerland does not have a tax treaty will be withheld.

Switzerland has signed 37 tax agreements to eliminate double taxation (there is such an agreement with the Russian Federation, which “inherited” it from the former USSR). Although Switzerland's tax treaty network is inferior to that of the Netherlands, it is considered one of the most favorable in the world. It should be noted that in Switzerland, tax incentives are provided for manufacturing enterprises, there are “sectoral” incentives and additional tax gradations for certain types of enterprises. This especially applies to holding and investment-type enterprises, trading and “service” companies (serving the main company). It is thanks to the favorable conditions that exist in Switzerland for holding companies that it is considered an “intermediate” type of jurisdiction. Through it the transit of capital and income from them is carried out. This is largely facilitated by the developed system of tax treaties in Switzerland, as well as its status as a stable and respectable state in the world.

This country has very favorable conditions for trade operations that require both resident status and preferential taxation. The main feature of a Swiss trading company is that, with low income tax, a company of this type can be managed in Switzerland, i.e. she has real resident status. At the same time, a Swiss company must conduct commercial operations outside the country. In addition, it has a favorable geographical position for trade operations on the European continent, since it is located in the center of Europe. Switzerland's customs border is transparent for trade with the European Union. A Swiss trading and intermediary company can be used for the wholesale purchase of goods in various European countries for subsequent import to Russia. One should not overlook the tax incentives for industrial businesses and production investments that are available in some Swiss cantons. Based on tax incentives, a domiciled trading company in Switzerland can acquire infrastructure and gradually develop into a European industrial trading company. Holdings. Switzerland is the second largest holding jurisdiction in the world (after the Netherlands). Special benefits for holding companies are based on the following provisions. The holding company receives benefits if it owns a block of shares with a value exceeding CHF 2 million. Federal taxes in this case are reduced in proportion to the share of dividends in the company's total income.

Holding benefits are reinforced at the regional level. Investment income in many cantons is tax deductible. However, Switzerland's double tax treaties for holding companies contain a number of restrictions. They boil down to the requirement that a certain part of preferential income “remains” in Switzerland. No more than 50% should be exported outside the country in the form of costs and interest. At least 25% of income must be paid in the form of dividends. The company's equity capital should not be less than 8% of its debt level.

A special type of company is registered in Switzerland, which is used to register the headquarters of foreign offices of international companies. These types of "service" companies serve the operations of the parent company. Taxable income is based on a rate of 10% of office expenses and is purely an estimate.

A company in Switzerland is an attribute of a serious business, one of the ideal places to create a foreign office of the parent company. In addition to considerations of prestige, such a solution also has a number of purely economic benefits. After all, taxation cannot be at a level close to offshore companies. At the same time, it will benefit from tax treaties that are not available to them. Although the tax treaty with Russia does not provide any special benefits, it is possible to take advantage of workarounds, for example through the Netherlands. In addition, it will be able to perform the functions of an “intermediate” holding company for the parent company and coordinate investments in Europe and abroad. This set of benefits is not provided by any jurisdiction in the world. In conclusion, it should be noted that owning your own company or real estate does not provide any immigration privileges. However, it is possible to obtain a six-month visa to live in the Confederation.

9.2. Social system of Switzerland

Medical care in Switzerland

Switzerland leads in life expectancy even among prosperous European countries. This is partly explained by the excellent ecology of the country, and partly by the high level of physical culture of the population. However, the main merit of the longevity of the Swiss is the highest level of medicine.

Extremely developed high technologies served as the basis for the development of research and pharmaceuticals. The latest diagnostic developments are first implemented here in Swiss clinics, and only then spread throughout the world.

The origins of the high achievements of Swiss medicine lie in the special attitude of the government. The Swiss authorities are doing everything to stimulate the development of medicine and pharmaceuticals, since, not without reason, they consider the health of the population not only humanitarian, but also practically profitable. The Swiss, being incorrigible pragmatists, have calculated that it is more profitable to invest money in medicine than in social benefits for disability. Thousands of doctors from all over the world come to Switzerland every year. Germany, the USA, Israel, France, being recognized leaders in medicine, are noticeably inferior to Switzerland in certain areas. Quality standards in Swiss medicine are so high that trainees and interns even from European countries have a hard time. Patients benefit from this, of course. And among the patients of Swiss clinics are celebrities from all over the world: politicians, artists, musicians and businessmen.

Despite the highest level of service and brilliant achievements of local medicine, prices for medical services are very affordable. The prices of an average diagnostic center in Zurich are hardly higher than in similar centers in Kyiv, despite the incomparable quality. Of course, it is worth taking into account the general high cost of the Swiss service industry.

Diagnostics and treatment in Switzerland are a one-piece product. A product that is produced in several world-famous institutes and supplied to local clinics first, these are Swiss laws regarding medicine.

Swiss surgery is a special pride of local doctors. It was in Switzerland that the world's first open-heart coronary bypass surgery was developed and successfully performed. Every year this technology saves hundreds and thousands of human lives around the world.

Benefits in Switzerland

Living wage benefits after leaving a job in Switzerland are the simplest in the world. The Swiss authorities do not impose any additional conditions or requirements on the applicant for social benefits. An applicant for benefits has the right to expect to receive 70% of the previous salary within 400 days if he has worked for at least six months in each year over the past two years. If the benefit applicant worked less, then social support will be paid to him for only 260 days, which is also quite enough to have time to find a job, leisurely finding exactly what suits best.

The National Insurance Institute has also established a maximum unemployment benefit. A Swiss resident who is unemployed has the right to receive no more than $65,000 per year from the state. This amount, according to social services, should be enough for a modest existence while looking for a new job.

Pension provision in Switzerland

The retirement age in Switzerland is 64 for women and 65 for men.

The pension insurance system was adopted by the Swiss government in 1948. According to the social protection program, contributions to the pension fund are provided, which are paid by all working residents of the country. As of 2009, the minimum pension in Switzerland is about 9,000 francs, the maximum is about 60,000. Every Swiss citizen, starting from the age of twenty, is insured by the state and is required to pay insurance premiums.

Upon reaching retirement age, depending on the length of service and salary, he is awarded an old-age pension. Premature receipt of a pension is possible due to health reasons, due to a work injury or other objective reasons. However, state pension insurance for Swiss pensioners is just a way not to lose a piece of bread and a roof over their heads.

Institute of Economics and Finance

Department of “Finance, money circulation and credit”

REPORT

in the discipline “Money, credit, banks”

on the topic of:

"Swiss Monetary System"

Student Group

Khanty-Mansiysk - 2010

It is worth saying that the country is very developed, and in the past it developed very intensively and progressively.

It all started accordingly with the use of coins that were produced in the country.

The history of the development of the monetary system itself is quite original and interesting.

The Swiss franc appeared in 1850 and was equal in nominal value to the French franc. It replaced the various currencies of the Swiss cantons, some of which by then used the franc (divisible by 10 Bazen or 100 centimes), which was equal in value to 1.5 French francs.

Until 1850, more than 75 different institutions were involved in the production of coins in Switzerland, including 25 cantons and semi-cantons, 16 cities, and abbeys. There were about 860 types of different coins in circulation, of varying values ​​and denominations. Moreover, in 1850, national currencies accounted for only 15% of the total money in circulation, with the remainder being foreign currencies, mainly brought by merchants. In addition to this, some private banks began to issue the first banknotes, so that the total number of coins and banknotes in circulation was 8,000. This made the currency system extremely complex.

To solve this problem, the new Swiss Federal Constitution of 1848 stipulated that the new Federal Government would be the sole institution in Switzerland issuing money. Two years later, the federal law on the monetary system was adopted, adopted by the Federal Assembly on May 7, 1850, which decided that the franc is the monetary unit of Switzerland.

In 1865, France, Belgium, Italy and Switzerland united in the Latin Monetary Union and agreed to exchange their national currencies at the ratio of 4.5 grams of silver for 0.290322 grams of gold. Even after the monetary union lost its strength in the 1920s and ended in 1927, Switzerland maintained this relationship until 1967.

As of January 20, 2006, the Swiss franc was worthUSD 0,7746, € 0.6367 and RUB 21,424. Since mid-2003, the Swiss franc has stabilized against the euro at CHF 1.55 per euro, so that the Swiss franc, like the euro, has risen and then fallen against the US dollar.

The Swiss franc traditionally belongs to the currencies of tax havens or offshore zones, with zero inflation and legally mandated gold and foreign exchange reserves of at least 40%. However, this gold peg, introduced in the 1920s, was abolished on May 1, 2000 due to amendments to the Swiss Constitution. The devaluation of the Swiss franc was only recorded on September 27, 1936 and was caused by the Great Depression, when the franc depreciated by 30% following the devaluation of the pound sterling, the US dollar and the French franc.

Small centimes (1 and 2) have long gone out of circulation (all prices in Switzerland are rounded to 5 centimes), but are still minted. Their design completely changed in 1948, and before that it had been constant since 1850.

The design of large centimes (from 5 to 20) remained the most stable: since 1879/81, no changes, only 5 centimes have become yellow since 1981. By the way, the reverse of large centimes has remained unchanged since 1850, and their obverse at first was the same as that of small ones.

Franc coins (from 1/2 to 2 francs) began to be minted in their current form in 1874/75. Changes over these almost 140 years were minimal: in 1968 they stopped being minted in silver, in 1982 they changed the orientation of the reverse to medal*, and in 1983 they added another star along the perimeter of the obverse in connection with the formation of the 23rd canton Yura.

The five-franc coins were the least fortunate: at first (from the 1850s to the 1870s) they had the same design as other francs in the 1850s, but then they changed it and had their own in 1888-1916. In 1922, they changed the design again, which has remained to this day with various minor changes, including a change in the orientation of the reverse.

For small centimes and francs, the inscription on the obverse reads “Helvetia”, i.e. Helvetia is the Latin and Romansh name for Switzerland. On large centimes and five-franc coins the name is written in full: "Confoederatio Helvetica" - Swiss Confederation.

Commemorative and thematic commemorative coins are issued irregularly, usually in denominations of 10, 20 and 50 francs, for example:

10 francs: bimetallic, center - copper-nickel, ring - aluminum bronze, manufactured in 2005; Description - Mount Jungfrau

10 francs: bimetallic, center - copper-nickel, ring - aluminum bronze, manufactured in 2009; Description - Swiss National Park

20 francs: silver, 2007; Description - FortressMunot

50 francs: gold, 2004; Description - Mountain Matterhorn

International designation: CHF

Denominations of banknotes in circulation: 10, 20, 50, 100, 500 and 1000 francs

1. Swiss monetary system

Switzerland is a country of banks. There is one bank for every 1.5 thousand residents. There are 140 branches of large foreign banks operating in the country. The Swiss banking system unites more than 500 banking organizations.

All Swiss banks are traditionally divided into three main groups:

* the largest national banks - Union Bank of Switzerland, Suiss Bank Corporation and Suiss Credit Bank;

* cantonal, local and savings banks, mainly dealing with local depositors in their regions. They also provide loans and carry out cash settlement operations;

* private banks whose main activity is investment portfolio management.

Considering only the Swiss banking system does not give a complete picture of the uniqueness and wide possibilities for investing capital in this country. The Swiss credit system also includes financial companies. They are divided into:

* companies that do not accept deposits, but carry out other banking operations.

They are subject to regulation only by certain articles of this legislation.

A distinctive feature of the Swiss banking system is strict control over the activities of banks and investment companies. After the Second World War there was not a single case of bankruptcy in Switzerland. Control over banks has a three-tier structure and is carried out by the Federal Banking Commission, the National Bank and the Swiss Banking Association.

The activities of banks, their regulation and control are carried out in accordance with the Federal Banking Law on Banks and Savings Banks of November 8, 1934. The main purpose of the Law is to protect the interests of the client.

A banking license is issued by the Federal Banking Commission only if the bank meets all the requirements of the Law. No exceptions are allowed. If violations of the Law are discovered, the issued license may be immediately revoked.

Another feature that determines the high rating of Swiss banks is banking secrecy. The secrecy of deposits is protected in Switzerland by both civil and criminal law. A bank that fails to keep the secrets of its clients may have its license revoked, and employees who disclose such information face imprisonment for up to six months or a fine of up to 50,000 Swiss francs. Banking information can be disclosed to government authorities only if there is evidence (not suspicion!) of the client’s involvement in a criminal crime. However, tax evasion is not considered a crime in Switzerland. Violation of foreign exchange regulations in other countries is also not considered a crime under Swiss criminal law.

The peculiarities of the Swiss banking system also include the functioning of the Banking Committee.

The Banking Committee is an independent body that is not subordinate to either the government or the National Bank. The Committee monitors banks' compliance with the Banking Act, the code of rules and established standards. It is designed to protect the interests of shareholders. The Committee in its activities relies on independent audit services that are located outside the bank, as well as on the bank’s internal audit. The committee is given the right to express its opinion when appointing people to senior banking positions. In Switzerland, the activities of this body are given great importance. The decisions of the Banking Committee are binding.

Money turnover. The national currency of Switzerland is the Swiss franc. Also, the Swiss franc is the official means of payment of Liechtenstein. The international currency symbol is CHF. Banknotes are issued by the Swiss Central Bank and the Swiss National Bank, and coins are minted by the Swiss Mint.

In cash circulation in the country there are banknotes in denominations of 10, 20, 50, 100, 500 and 1000 francs, as well as coins in denominations of 1/2, 1, 2 and 5 francs, 1, 5, 10 and 20 centimes (issue of a coin of 1 centime, discontinued in 2006).

Switzerland is divided into 4 language regions: German, French, Italian and Romansh. Therefore, banknotes are signed in the listed languages: on the front side of the banknote there are inscriptions in German and Romansh, and on the back - in French and Italian.

In the four official languages ​​of the state, the name of the monetary unit is as follows: Franken (in German), franc (in French and Romansh), franco (in Italian). The hundredth of a franc is called Rappen (Rp.) in German, centime (c.) in French, centesimo (ct.) in Italian, and rap (rp.) in Romansh.

Swiss paper money has excellent protection against counterfeiting. Since 1976 and until now, no attempts to forge them have been recorded.

On the front sides of Swiss banknotes there are portraits: on 10 francs - Le Corbusier (Zhaneret, Charles Edouard), on 20 francs - Arthur Honegger, on 50 francs - Sophie Tauber-Arp, on 100 francs - Alberto Giacometti, on 200 francs - Charles Ferdinand Ramu, on 1000 francs - Jacob Burckhardt.

In many Swiss stores you can pay in euros and dollars according to the exchange rate. You can exchange currency at banks, exchange offices, airports, and train stations. Traveler's checks and credit cards are accepted for payment within the state.

Banks are open from 8.00 to 12.00 and from 14.00 to 16.30. It is better to change money abroad than in Switzerland itself, where the national currency exchange rate is slightly higher.

Switzerland is one of the most expensive countries in Europe, and Geneva is the most expensive city in Switzerland.

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The monetary policy of the state is carried out through the Central Bank (CB), as a rule, in two directions: pursuing an expansionist or expansionary policy...

Switzerland is one of the most respectable financial centers in Europe. The traditional status of a neutral state, location in the center of Europe, and well-established democratic institutions have provided Switzerland with a special position on the political map of the world. Switzerland is beyond military, political and racial conflicts. The shocks of the twentieth century did not affect its political and economic sovereignty. Political stability and economic prosperity have made Switzerland attractive to wealthy people in other countries. More than 10% of its permanent residents are foreigners. Bank deposits flock here from all over the world. Switzerland is a transit point for international financial flows. The Swiss franc is one of the world's major reserve currencies.

The Swiss banking system is one of the first in the world in terms of confidentiality of bank deposits. However, Switzerland's reputation in this area has recently become somewhat ambivalent. Its authorities have come under severe international criticism for dormant deposits held in Swiss banks since the Second World War. Swiss banks still keep financial secrets from this era. According to many, the principle of secrecy and inviolability of bank deposits has come into conflict with international ethical standards. Nevertheless, the scandal with “dormant” deposits did not have a significant impact on the status of this country as an international center of financial transactions. Swiss firms are widely used in a variety of tax and financial planning schemes.

Taxation in Switzerland is generally in line with international standards. Of course, it cannot be classified as an “offshore jurisdiction” in the proper sense of the word. However, in some respects it can be considered as

preferential, especially compared to countries such as Germany or France. The federal tax in Switzerland is only 9.8%, and in some cases local tax is not allowed. Switzerland is classified as an “intermediate” jurisdiction with a “moderate” tax system. This is due to the fact that there are a number of benefits for certain types of companies. In addition, offshore companies are registered in Switzerland (but not everywhere).

Let's start in order. Switzerland is a confederation. It consists of 26 cantons - small sovereign entities, each of which has its own tax legislation. This circumstance explains the peculiarities of the tax system of the confederation as a whole. Tax liability is divided into three parts - federal, cantonal and local. This makes it difficult to get to know the Swiss tax system, but makes possible a number of promising international tax schemes.

Federal tax is levied on a progressive scale and ranges from 3.63 to 9.8%. Cantonal taxes are significantly higher. They make up 20-30%. To this should be added municipal taxes. For example, the Geneva Commune of the Canton of Geneva levies a tax of 45.5% of the cantonal tax. As a result, the effective income tax rate of a Swiss company often reaches 40%. An essential element of the Swiss tax system is the property tax (net worth tax) -0.8%. It is collected at the federal and, in some cases, at the local level. The withholding tax in Switzerland is 35%. This means that 35% of all dividends distributed to a company with which Switzerland does not have a tax treaty will be withheld.

However, not everything is so gloomy. Switzerland has signed 37 tax agreements to eliminate double taxation (there is such an agreement with the Russian Federation, which “inherited” it from the former USSR). Although Switzerland's tax treaty network is inferior to that of the Netherlands, it is considered one of the most favorable in the world. It should be noted that in Switzerland, tax incentives are provided for manufacturing enterprises, there are “industry” incentives and additional tax gradations for certain types of enterprises. This especially applies to holding and investment-type enterprises, trading and “service” companies (serving the main company). It is thanks to the favorable conditions that exist in Switzerland for holding companies. it is regarded as an “intermediate” type of jurisdiction. Through it the transit of capital and income from them is carried out. This is largely facilitated by the developed system of tax agreements of Shvey) (Ariya), as well as its status as a stable and respectable state in the world.

The peculiarity of Switzerland as a country participating in many offshore schemes is that in most cantons so-called “domiciled” companies are registered, the profits of which will only be subject to federal tax at a reduced rate of 3.63-9.8%. Such a company must comply with classic offshore principles (not be resident, not conduct business in Switzerland, not have an office, staff or real estate in Switzerland). As you can see from the status, such a company is close to typical offshore companies. It is distinguished only by the presence of a small tax (however, quite comparable, for example, with the tax on Cypriot offshore companies (4.25%)). At the same time, the Swiss company has a more respectable image than any other offshore company.

However, the possibilities of Swiss jurisdiction in the field of offshore business are not limited to this. In some cases, the domiciled company has the right to maintain a physical office and staff. The command and control center will quite officially (though not necessarily actually) be located in this country. This opportunity exists in the Swiss canton of Friborg. Resident status allows you to take advantage of the wide network of tax treaties that Switzerland has. The preferential cantons in Switzerland also include Zug and Neuchatel.

Taxation issues for domiciled companies are resolved differently in different cantons. In a number of cantons, such a company can carry out part of its operations in Switzerland itself while maintaining preferential status. However, the share of such operations is limited. Thus, in some cantons tax incentives are provided on the condition that at least 80% of the trading and purchasing company’s operations must be carried out outside the country. Otherwise, the tax rate increases to 20%.

Trading companies. This country has very favorable conditions for trade operations that require both resident status and preferential taxation. The main feature of a Swiss trading company is that, with low income tax, a company of this type can be managed in Switzerland, i.e. she has real resident status. At the same time, like “offshore” companies in other jurisdictions, a Swiss company must conduct commercial operations outside the country. In addition, it has a favorable geographical position for trade operations on the European continent, since it is located in the center of Europe. Switzerland's customs border is transparent for trade with the European Union. A Swiss trading and intermediary company can be used for the wholesale purchase of goods in various European countries for subsequent import to Russia. You should not overlook the tax incentives for industrial businesses and industrial investments that are available in some Swiss cantons. Based on tax incentives, a domiciled trading company in Switzerland can acquire infrastructure and gradually develop into a European industrial trading company.

Holdings. Switzerland is the second largest holding jurisdiction in the world (after the Netherlands). Special benefits for holding companies are based on the following provisions. The holding company receives benefits if it owns a block of shares with a value exceeding CHF 2 million. Federal taxes in this case are reduced in proportion to the share of dividends in the company's total income.

Holding benefits are reinforced at the regional level. Investment income in many cantons is tax deductible. However, Switzerland's double tax treaties for holding companies contain a number of restrictions. They boil down to the requirement that a certain part of preferential income “remains” in Switzerland. No more than 50% should be exported outside the country in the form of costs, royalty payments and interest. At least 25% of income must be paid in the form of dividends. The company's equity capital should not be less than 8% of its debt level. In general, the conditions of the Swiss holding jurisdiction are considered less favorable than those that exist in the Netherlands.

Service companies. A special type of company is registered in Switzerland, which is used to register the headquarters of foreign offices of international companies. These types of “service” companies serve the operations of the parent company. Taxable income is based on a rate of 10% of office expenses and is purely an estimate.

A company in Switzerland is an attribute of a serious business, one of the ideal places to create a foreign office of the parent company. In addition to considerations of prestige, such a solution also has a number of purely economic benefits. After all, taxation may be at a level close to offshore companies. At the same time, it will benefit from tax treaties that are not available to them. Although the tax treaty with Russia does not provide any special benefits, it is possible to take advantage of workarounds, for example through the Netherlands. In addition, it will be able to perform the functions of an “intermediate” holding company for the parent company and coordinate investments in Europe and abroad. This set of benefits is not provided by any jurisdiction in the world. In conclusion, it should be noted that owning your own company or real estate does not provide any immigration privileges. However, it is possible to obtain a six-month visa to live in the Confederation.

Profits of companies resident in Switzerland, including dividends received, interest, royalties, as well as profits from the sale of non-current assets, are subject to corporate tax. To clarify, a company is recognized as a tax resident of Switzerland if it is established in this state, has a permanent establishment or is effectively managed and controlled from Switzerland. In general, the tax base of Swiss corporate tax is formed according to rules similar to those in Russia. That is, the company’s income is reduced by the amount of reasonable expenses.

The corporate tax rate consists of two parts. The federal portion is charged at a flat rate of 8.5 percent. However, in accordance with existing rules, tax is not calculated on profit, but is derived from it. Therefore, the effective tax rate is 7.83 percent.

Cantonal or municipal rates vary within each individual canton. The lowest regional corporate tax rates were set by the cantons of Appenzell-Auserrhoden and Obwalden - 6 percent. Thus, we can say that the total effective corporate tax rate in Switzerland varies from 12.7 (100%: (100% + 8.5% + 6%) x (8.5% + 6%)) to 24.2 percentage depending on the canton and municipality where the taxpayer is located. The average in 2008 was 19.2 percent.

The Swiss Confederation includes 26 cantons, which include 3,030 communities, which are individual towns or villages.
The activities of the cantons are limited by federal laws in only a few areas - defense, foreign policy and economic policy of the entire confederation. In all other respects, the cantons are independent.

The three-stage management system assumes the presence of budgets at each level. It should be noted that the budget surplus of Switzerland is likely to remain above 4 billion Swiss francs, said Swiss Finance Minister Hans-Rudolf Merz. Commenting on the current year, he said that very high expenditures of about 5 billion francs should be expected. Previously, Switzerland's budget surplus was expected to be 3.4 billion francs in 2007 and 1.2 billion francs in 2008.

There are no legal acts, unlike other countries.

In Switzerland, as in other countries, the so-called financial equalization is applied, i.e., the cantons that are strong in terms of taxation transfer part of their funds to the disposal of the weak cantons. The same thing happens at the community level.

About half of the confederation's direct taxes, amounting to 20-30% of its income, are redistributed, although there are no provisions in the law on financial equalization. The specific amounts of redistribution are discussed at a meeting of cantonal financial directors.

The tax system in Switzerland has some features that distinguish it from other European countries. First of all, this is the autonomy of the cantons in relation to taxes. Another feature is competition among the cantons, since each of them independently determines the tax rates in force on its territory. If tax rates are raised, the canton will receive more money, but on the other hand, due to tax rates, its population may simply move to a cheaper canton. It is this competition between the tax systems of different cantons that is an effective means of reducing tax rates throughout Switzerland.

Taxes imposed on individuals and legal entities do not exceed 35% in Switzerland.

The main type of tax is income tax. Its amount charged to individuals or legal entities ranges from 2 to 5%. There are indirect types of taxation, for example, turnover tax. There are taxes that are not very important, for example property tax. All these types of taxes exist at three different levels: federation, cantons and communities.

Another type of tax - offset tax - is taken from the turnover of securities. It allows you to secure the entire tax system. This tax is charged on capital gains (as they arise) but is returned to taxpayers at the end of the year. This is done so that the investor cannot hide income from taxation. If all taxpayers paid their taxes honestly, the tax credit would be fully refunded to them at the end of the year. If the state receives a tax credit, for example on securities that will not be declared as income anywhere else, the tax goes to the state and is not returned to the taxpayer.

The confederation receives indirect taxes, while the cantons and communities receive direct taxes.
In total, as a rule, about 70% of all tax revenues go to the cantons and communities, and about 30% to the confederation. Taxes going to the confederal budget seem to overlap with cantonal taxes. There is also double taxation of the same objects.

The most important feature of the Swiss tax system is the general interpretation of tax laws. There are universal provisions here that give tax officers the opportunity to independently interpret tax laws. Economic considerations are taken into account first (before legal ones, for example). Any legal constructions, a favorite remedy in Switzerland, as in any other country,

become secondary if economic considerations arise.

Taxpayers are any private or legal entities - residents residing in the country, and legal entities - non-residents located abroad, whose enterprises are located in the territory
Switzerland. They are also subject to taxation.

The basis for taxation of profits is the balance sheet data, each enterprise must publish them. Double taxation takes place: profit is taxed, on the one hand, at the level of the enterprise itself, and on the other, at the time of its distribution. Shareholders are also required to pay income tax.

When calculating profit, allowed or seemingly justified expenses are subtracted from all income received by the enterprise. The entrepreneur, for his part, will try to include a large amount of expenses, and the tax inspector will try to reduce it. The two parties, after discussion, eventually come to a common decision. This system works quite well.
The tax is levied once a year, based on the average of the two previous years. This is done specifically to

avoid strong fluctuations in taxation.

There is a capital tax levied at the beginning of the tax year at a progressive rate. Its size is insignificant,

to negatively affect the functioning of capital.