Bulgarisch-Schweizerische Handelskammer
Mattig-Suter und Partner Schwyz

Opportunities in Switzerland

Translation on the article in Dnevnik newspaper of 12. 06. 2006 Sofia, Bulgaria
by Maria Atanasova.
The Swiss company Mattig Management Partners offers to Bulgarian companies a model for restructuring their activities, with which they would achieve a decrease of their corporate tax, explained the General Manager of the Bulgarian office of the company, Zoya Vasileva. According to her presentation the tax could be lowered to under 12%. The scheme (model) is similar to those of off-shore structures, but is based on the advantages of the Swiss legal and tax legislation. The interest would be mainly from larger companies with sizeable foreign commercial transactions. This is only part of the services offered by «Mattig», and for the Bulgarian firms would be of interest also the opportunities for alternative financing, as well as external financing by Swiss banks. «Mattig» already is negotiating with three large Bulgarian companies, which are interested in such opportunities.
In order to apply for the model, it is necessary first for the company to establish its branch or subsidiary in Switzerland. It is not required for it to move its main activity, and would continue its operations in Bulgaria and to sell its goods to the foreign clients. The decrease of the corporate tax could be achieved only if all its documentation is processed in its branch in Switzerland. Also, if the subsidiary performs its activities for more than half a year in Switzerland, after this period the mother company could secure loans from Swiss banks and use financing at more favorable conditions. In this way it would be able to more easily finance its business and to gain competitive advantage. This is very important for Bulgarian companies, because after the accession of the country to the EU they would have to struggle with the fierce competition, in order to sustain its market position, as well as to win new ones, explained the President of the Swiss company Dr. Franz Mattig.
An important detail of the model is that if the subsidiary in Switzerland does not perform real activities, but only receives income from interest, then could be requested additional taxes, and this could lead to losses. For this reason the company should perform active business, in order to realize the decrease in tax and improvement of the profit.
Invitation (pdf, 137 KB):
«Opportunities in Switzerland» Promoting Bulgarian exports on the European markets
Reporting, June 2006