The influence of the tax system on the location of holding companies in Switzerland

The purpose of this study is to determine the extent to which the tax system constitutes a first-order element influencing the location of holding companies in Switzerland.

To achieve this goal, the authors have estimated an econometric model using ordinary least squares. The authors also provide a unique statistical database of holding companies established in Switzerland. The independent tax variables revolve around concepts of tax burden and effort, whereas the non-tax variables are generally those referred to in the literature on location of investments.

The study concludes that, in addition to the tax burden, there are other qualitative variables that show the same influence on the geographic location of holding companies in Switzerland.

The study of holding companies as instruments of international tax planning is usually linked to law offices or consulting firms that specialize in the international tax system – not university academic research per se. The interaction of academic theory and international fiscal praxis provides an interesting perspective from which to approach this topic.