Switzerland is dangling the carrot of more attractive tax rates in an effort to lure hedge funds and private equity groups to the country, reports eFinancial News. Corporate tax rates on hedge funds in Switzerland can range up to 40% a year. Now, some regions of the country are being permitted to offer better terms to fund managers who launch funds and create local private equity and hedge fund jobs.
Nevertheless, the Swiss tax rates are still considerably higher than the 10% to 15% levied on hedge funds in the U.S. and UK. Swiss companies have been successful in setting up fund of funds but the Swiss market still lags in the number of single-manager hedge funds and private equity groups.
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