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The canton is an attractive residential region as well as a preferred business location. Because the Canton of Zug offers a broad, but focused mix of sectors, an attractive tax situation and a business- friendly environment. Corporate bodies in the Canton of Zug pay tax both on income and tax on capital (equity). The tax scales are proportional, with a lower scale applying in the case of income below CHF 100,000. The maximum amount of tax levied on income is around 15.1% of the income before tax (as of 2012). The maximum amount of tax levied on capital is around 0.75‰ (as of 2012). At these levels, the Canton of Zug belongs to the most favourable cantons in relation to tax in the whole of Switzerland. Furthermore, there are advantageous tax regulations with regard to holding companies, domicile companies and mixed companies. Tax Benefits Holding Companies Holding companies are companies whose business purpose consists mainly in the continual administration of investments in other companies and which do not conduct an active business in Switzerland. As a rule, holding companies are not subject to cantonal and municipal income tax and only a reduced tax on capital is levied. Domicile Companies Domicile companies are companies which carry-out only an administrative, but not a business activity in Switzerland. In the case of purely domicile companies, earnings from qualifying holdings and other earnings from abroad are not subject to income taxes at cantonal and municipal level. Furthermore, domicile companies are only subject to reduced tax on capital. Mixed Companies Mixed companies are companies whose business activity is mainly restricted to abroad and whose business activities in Switzerland play only a subordinate role. Earnings from qualifying holdings are not subject to income taxes on cantonal and municipal level. Other earnings from abroad are taxed only in a range of a quota between 10% - 25%, which is subject to ordinary tax. Furthermore, mixed companies are only subject to a reduced tax on capital. CFS works with national and international Law Firms and Consultants to ensure that the correct tax and legal advice is obtained and assist in facilitating any action resulting from this.