Clarity onSwiss TaxesBeyond limits
16
Individual taxation
4
Corporate taxation
Swiss tax landscape
E D ITO R I A L
As reform dominates tax agendas worldwide, Switzerland remains competitive on the global tax stage according to KPMG’s “Swiss Tax Report 2018”. This annual study compares corporate and individual tax rates at the national and international level, analyzing data to draw conclusions on the latest developments.
Regulatory change is under way in many tax jurisdictions. KPMG’s Swiss Tax Report 2018 reflects the fact that it usually takes time for the full effects to unfold. Shifts can also be abrupt, however. Perhaps the highest profile example is the recent US tax reform, with its far-reaching implications for individual and corporate taxpayers. So far, initial speculation that the move could trigger a new “race to the bottom” for competitive tax rates among Swiss cantons appears unfounded. Indeed, KPMG’s report shows that natural – viable – tax rate limits have been reached in many cases, and Switzerland’s own Tax Proposal 17 safeguards stability for the foreseeable future.
Supranational regulations, such as BEPS and ATAD II, or even transnational agreements are also increasingly part of the global tax landscape. Ongoing global shifts have become the norm overall. In addition, digital megatrends are gathering speed, ready to drive the next phase of the tax landscape evolution. What will this mean for Switzerland?
KPMG’s tax experts are observing regulatory and technological developments, ready to analyze the impact for our clients. Please contact us for personal insights and advice on any tax matter.
Peter Uebelhart
Peter UebelhartHead of Tax, KPMG Switzerland
Welcome
Individual taxation
Clarity on Swiss Taxes
3
Corporate taxation
S W I S S TA X R E P O RT 2 018
Corporate income tax
Switzerland remains attractive against the global and international tax competition. Cantons of central and eastern Switzerland stand out once again as having particularly low tax rates. Several tax reforms around the world – most recently in the US – are driving the ongoing trend toward lower corporate income tax. Successive cuts are also planned in parts of Europe in the coming years, including France and the UK. Tax rates are also expected to fall in Switzerland, especially in connection with the Tax Proposal 17.
4
Clarity on Swiss Taxes
5
0.18%
100 - 1000
C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X
Contribution of businesses to tax revenues from direct federal taxes
(by profit levels)
67.04%
13.62%
5.60%
9.68%10.81%
87.76%
1.11% 1.28%2.93%
0 - 10 10 - 50 50 - 100 1000+
Taxpayers
Contribution to direct federal taxes
Taxable profit in CHF 1,000/year
1 According to the FTA – Note: latest available data for the tax period 2014. Source: Federal Tax Administration FTA, 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/dbst-jp-kantone-2014.html.
While over two-thirds of taxable companies pay virtually no tax, 2.93% carry almost 90% of the total direct (federal) tax burden. Companies in privileged tax regimes account for 46.5% (around CHF 4.3 billion) of direct federal taxes paid 1.
Which businesses are shouldering the tax burden in Switzerland?
6
20.6620.53Jura
16.1216.12Grisons
14.9214.92Uri
12.3212.32
12.6612.66
12.7412.74
13.0413.04
14.1614.16
14.6014.51
15.2715.19
15.6115.61
15.7015.70
15.9715.75
16.4316.43
17.4017.40
18.6118.61
19.8619.86
20.6720.55
20.7020.70
21.1521.15
21.4921.38
21.6421.64
21.7421.74
21.3721.37
22.1822.18
24.1624.16
2017
2018
Corporate income tax rates in the cantons – 2017 and 2018 The cantons of central Switzerland once again top the table for the lowest ordinary corporate income tax rates. These cantons also showed little movement in terms of tax rates, with Zug, Schwyz and Schaffhausen the only ones to adjust their rates slightly downward. The bottom of the league is dominated by western Switzerland, the Mittelland region and the city cantons. Jura, Ticino and Solothurn were the only ones to cut rates, and even then only very slightly. However, further cuts – especially in the higher tax cantons – are expected in connection with the pending Tax Proposal 17.
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.
Nidwalden
Lucerne
Obwalden
Appenzell A.
Appenzell I.
Zug
Schwyz
Glarus
Neuchâtel
Schaffhausen
Thurgau
St. Gallen
Aargau
Fribourg
Ticino
Basel-Landschaft
Zurich
Solothurn
Bern
Valais
Vaud
Basel-Stadt
Geneva
Figures in percent
Clarity on Swiss Taxes
7
22.76 21.38
21.57 21.74
23.53 21.37
17.27 12.66
Vaud - 2.16
21.12 20.53Jura - 0.59
16.98 16.43Thurgau
Corporate income tax rates in the cantons – trend 2007 vs. 2018 Corporate tax rates have fallen particularly noticeably in Lucerne, Appenzell A., Neuchâtel, Schaffhausen and Grisons, with a rate of 12% emerging in practice as the lowest limit. Only very small changes in ordinary corporate tax rates can be observed in the Mittelland region, western Switzerland and the city cantons. Within this group, Basel-Landschaft was the only canton to significantly cut the rate, while Valais actually increased its rate marginally.
- 0.55
18.90 12.32
13.12 12.74 18.04 13.04 15.47 14.16 16.10 14.51 16.32 14.92 19.76 15.19 22.18 15.61 19.98 15.70 22.84 15.75 29.06 16.12
19.08 17.40 22.32 18.61 21.95 19.86
22.00 20.55 25.65 20.70 21.32 21.15
23.40 21.64
24.81 22.18 24.24 24.16
Lucerne
Nidwalden
Obwalden
Appenzell A.
Appenzell I.
Zug
Uri
Schwyz
Neuchâtel
Glarus
Schaffhausen
Grisons
St. Gallen
Aargau
Fribourg
Ticino
Basel-Landschaft
Zurich
Solothurn
Bern
Valais
Basel-Stadt
Geneva
- 6.58
- 4.61
- 0.38
- 5.00
- 1.31
- 1.59
- 1.40
- 4.57
- 6.57
- 4.28
- 7.09
- 1.68
- 3.71
- 2.09
- 1.45
- 4.95
- 0.17
-1.38
-1.76
+0.17
- 2.63
- 0.08
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.
- 12.94
2007
2018
Figures in percent
C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X
8
17.74% 17.71%
Genf
Basel-Stadt
Bern
Waadt
Zürich
Aargau
CH-Durchschnitt
St. Gallen
Graubünden
Schaffhausen
Neuenburg
Schwyz
Zug
Obwalden
Nidwalden
Luzern
19.44%20.76%
18.70%18.96%18.06%18.31% 17.90%18.01% 17.80%17.89%
2007
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.
2008 2009 2010 2011 2012 2013 2014 2015 2016
– 3.05%
Corporate income tax rates in the cantons – trend 2007 to 2018 Average income tax rates continue to fall marginally.
Corporate income tax rates in the cantons – trend 2007 to 2018 Corporate income tax rates continue to stagnate, with Schwyz, Zug and Schaffhausen alone in reducing rates slightly.
30%
28%
26%
24%
22%
20%
18%
16%
14%
12%
Geneva
Vaud
Basel-StadtBern
Zurich
Aargau
Swiss averageSt. Gallen
GrisonsSchaffhausen
SchwyzZug
NidwaldenLucerne
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.
Neuchâtel
2017
2017
2018
Obwalden
2018
Clarity on Swiss Taxes
9
Corporate income tax rates in the cantons in 2018
20.5Jura
19.9Fribourg
21.7Valais
21.6Bern
21.4Solothurn
21.4Vaud
20.7Basel-Landschaft
18.6Aargau
22.2Basel-Stadt
12.3Lucerne
12.7Obwalden
15.6Neuchâtel
24.2Geneva
Cantons with a corporate income tax rate below the Swiss average (17.71%)
Figures in percent
Cantons with a corporate income tax rate above the Swiss average (17.71%)
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.
C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X
10
18.6Aargau 21.2
Zurich
15.8Schaffhausen
16.4Thurgau
13.0Appenzell A.
14.2Appenzell I.
12.3Lucerne
12.7Nidwalden
14.9Uri 16.1
Grisons
17.4St. Gallen
15.7Glarus
15.2Schwyz
14.5Zug
20.6Ticino
Clarity on Swiss Taxes
11
15.27 | 15.19
- 0.22
16.12
16.43
16.00
15.97 | 15.75
15.70
14.92
15.00
15.00
15.00
18.61
15.61
18.00
The cantons compared with European countries The comparison with Europe shows hardly any change in the lower tax rates, with the cantons of central Switzerland enjoying a particularly good position. The Channel Islands and certain (south) eastern European states are the only locations to offer even lower ordinary corporate income tax rates. Ireland remains Switzerland’s main competitor in Europe. There is little change in Europe’s center field apart from Croatia and a few Swiss cantons, which lowered their income tax rates.
17.40
14.60 | 14.51
14.16
12.66
12.50
12.50
12.50
12.32
20.00 | 18.00
10.00
9.00
12.74
+/– 0
Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Albania, AI, GL, GR and NE for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.
C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X
13.04
- 0.09
Schaffhausen
Romania
Glarus
Thurgau
Grisons
Albania
Serbia
Lithuania
Uri
Ukraine
Neuchâtel
Guernsey
Montenegro
Hungary
Bulgaria
Croatia
Lucerne
Ireland
Liechtenstein
Cyprus
Nidwalden
Obwalden
Appenzell I.
Schwyz
Zug
St. Gallen
Aargau
Appenzell A.
Jura
9.00
19.00Poland
- 0.08
- 2.00
12
19.00
19.00Slovenia
UK
19.86
21.37
29.00
24.00 | 23.00
22.18
21.64
20.70
20.67 | 20.55
20.00 | 22.00
21.00
24.16
35.00
33.33 | 33.00
24.00
25.00
29.79 | 30.00
27.08 | 26.01
25.00
25.00
22.00
22.00
21.49 | 21.38
21.74
21.15
20.66 | 20.53
20.00
Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for BE, BL, GE and JU for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.
Greece
Norway
Basel-Stadt
Bern
Geneva
Fribourg
Basel-Landschaft
Slovakia
Turkey
Ticino
Zurich
Valais
Solothurn
Sweden
Vaud
Jura
Estonia
Denmark
The Netherlands
Austria
Luxembourg
Germany
Spain
Italy
France
Malta
- 0.11
- 1.00
- 1.07
+ 0.21
2018
+/- compared with previous year
Figures in percent
The countries of central Europe bring up the rear in the attractiveness rankings for ordinary corporate tax rates. Norway and Luxembourg reduced their rates once again in 2018 and France is planning successive cuts to bring its rate down to 25% by 2022. Turkey and Germany bucked the trend by increasing their rates.
- 0.13
- 0.12
+ 2.00
- 0.33
Clarity on Swiss Taxes
13
40.00 | 27.00USA - 13.00
30.86
34.61 | 35.00
34.00
30.00
28.00
26.50
Japan
India
Canada
South Africa
Australia
Brazil
17.00 26.00+ 9.00
Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Bahamas, Bermuda, Cayman Islands, Dubai, Russia and UAE for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.
Global comparison (selected countries) Despite massive tax cuts in the US, the famous offshore domiciles plus Hong Kong and Singapore remain the clear leaders in terms of tax appeal. In a global comparison, Switzerland retains its place in the top third.
25.00
25.00
24.00
20.00
17.74 | 17.71
17.00
16.50
10.00
25.00
0.00
0.00
0.00
0.00
0.00
- 0.03
Trend: countries 2007 – 2018Only a few countries have actually increased their corporate income tax rates since 2007.
28.00 30.00 18.00 20.00
25.00 29.00
19.00 21.00
+ 2.00
+ 2.00
+ 4.00
+ 2.00
Maximum corporate income tax rates, Source: KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.
2007
2018
Figures in percent
C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X
Chile
Bahamas
Bahrain
Bermuda
Cayman Islands
Dubai
Qatar
Hong Kong
Singapore
Swiss average
Russia
Malaysia
China
Indonesia
Panama
Mexico
Iceland
Greece
Slovakia
2018
+/- compared with previous year
Figures in percent
+0.39
55.00UAE
14
27.00 24.00 20.00 17.00
- 3.00
- 3.00
Malaysia
Singapore
17.50 16.50
29.63 26.01
- 1.00
- 3.62
33.00 25.00- 8.00
- 6.00
38.36 30.00- 8.36
24.00 20.00- 4.00
16.00 9.00- 7.00
40.69 30.86- 9.83
25.00 20.00- 5.00
Trend: countries 2007 – 2018In recent years, corporate income taxes have seen huge reductions, especially in the Middle East and – currently – in the US. The UK and France have also already announced a larger cut.
55.00 15.00 35.00 10.00 35.00 10.00 37.25 24.00
28.00 22.00
25.50 25.00
20.76 17.71
- 40.00
- 25.00
- 25.00
- 13.25
30.00 19.00- 11.00
- 0.50
- 3.05
2007
2018
Figures in percent
Hong Kong
Luxembourg
China
Sweden
Germany
Russia
Hungary
Japan
Jordan
Kuwait
Gibraltar
Qatar
Italy
The Netherlands
Swiss average
27.50 25.00- 2.50South Korea
UK
Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Gibraltar and Russia for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.
40.00 27.00- 13.00USA
33.33 33.00- 0.33France
Clarity on Swiss Taxes
15
Individual taxationIncome tax
Income tax rates have not seen any major changes in the past year in Switzerland or internationally. The general downward trend in individual tax rates appears to be tailing off. Switzerland remains a highly attractive location not just for businesses, but also for individuals.
S W I S S TA X R E P O RT 2 018
16
Clarity on Swiss Taxes
17
53.06%
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
2.63%
35.04%
7.00%
26.19%
8.24%
15.69%16.29%
15.14%
12.78%
4.31%
0 - 50 50 - 75
Taxpayers
Contribution to direct federal taxes
Taxable income in CHF 1,000 / year
Note: latest available data for the tax period 2014. Source: Federal Tax Administration FTA , 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2014.html.
3.63%
75 - 100 100 - 150 150 - 200 200+
Contribution of individuals to tax revenues from direct federal taxes
(by income bracket)
In Switzerland, 3.63% of taxpayers, i.e. those with the highest income, pay more than 50% of direct federal taxes from natural persons.
Who shoulders the tax burden in Switzerland?
18
42.74
4.85
6.95
Contribution of individuals to tax revenues from direct federal taxes
(by income bracket)
0.00
79.45
Percentage share of taxpayers in direct federal taxes
Note: latest available data for the tax period 2014, including persons taxed on a lump-sum basis and taxpayers where income taken into account in determining the tax rate is different from the taxable income. Source: Federal Tax Administration FTA, 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer.html.
0.16 0.36 0.65 1.03 1.752.71
4.48
9.41
10.30
3.62
6.90
10 200 30 40 50 60 70 80 90
99 - 100
98 - 99
97 - 98
96 - 97
95 - 96
90 - 95
11.04
100
Figures in percent
The 10% of taxpayers with the highest income shoulder the burden for 80% of direct federal taxes, while the top 1% in terms of income account for 42.74% (prior year 41.3%).
Clarity on Swiss Taxes
19
31.1631.17Lucerne
40.4640.46
25.5525.55
24.8624.86
22.8622.86
24.3024.30
25.3525.35
28.2128.21
30.4830.48
31.5631.56
32.1832.18
32.4832.48
32.2932.29
33.5233.52
34.0534.05
34.1834.18
36.0236.02
36.5036.50
37.4337.43
39.3339.33
39.7639.76
40.7240.72
41.2741.27
41.5041.50
42.1742.17
44.7544.75
2017
2018
Income tax rates in the cantons – 2017 and 2018The cantons of central Switzerland also lead the tax league for individual taxation. The bottom of the ranking is dominated by the cantons of western Switzerland and the Mittelland region. Elsewhere there was no movement in tax rates, apart from in Lucerne.
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.
Figures in percent
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
Jura
Obwalden
Zug
Appenzell I.
Nidwalden
Uri
Schwyz
Appenzell A.
Glarus
Grisons
Thurgau
Schaffhausen
St. Gallen
Aargau
Solothurn
Fribourg
Valais
Basel-Stadt
Zurich
Neuchâtel
Ticino
Bern
Vaud
Basel-Landschaft
Geneva
20
33.96%34.61%34.85%
34.05%34.25% 33.76%33.84% 33.86%33.77% 33.99%33.98%
2007
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.
2008 2009 2010 2011 2012 2013 2014 2015 2016
– 0.89%
Income tax rates in the cantons – trend 2007 to 2018After a modest slide in recent years, the average maximum tax rates appear to have stabilized.
2017
33.96%
2018
Clarity on Swiss Taxes
21
32.5531.17Lucerne
25.2032.29Schaffhausen
41.0240.72
26.1424.86
23.1022.86
24.0124.30
26.7425.55
33.0025.35
25.1928.21
31.2630.48
34.4931.56
32.9532.18
35.6332.48
36.1633.52
36.8434.05
36.4734.18
36.3336.02
37.0036.50
38.9137.43
39.3439.33
40.1639.76
43.5440.46
41.2841.27
41.5041.50
42.5542.17
44.7644.75
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
2007
2018
Figures in percent
Income tax rates in the cantons – trend 2007 to 2018The cantons of central Switzerland have occupied the top spots in the tax ranking for over a decade. Apart from Uri, tax rate reductions were only marginal. Obwalden, Schwyz and Schaffhausen were the only cantons to increase their tax rates, while Aargau, Solothurn and Jura saw the most significant rate cuts. Neuchâtel, Bern, Vaud and Geneva have maintained the same rates for over 10 years.
Ticino
Appenzell I.
Obwalden
Zug
Nidwalden
Uri
Schwyz
Appenzell A.
Grisons
Glarus
Thurgau
St. Gallen
Aargau
Solothurn
Fribourg
Valais
Basel-Stadt
Zurich
Neuchâtel
Jura
Bern
Vaud
Basel-Landschaft
Geneva
22
Income tax rates in the cantons – trend 2007 to 2018The majority of top tax rates saw marginal variations in recent years. Alongside significant cuts in Aargau, Thurgau and St. Gallen, increases were notable in Schaffhausen and Schwyz.
Genf
Waadt
Bern
Zürich
Neuenburg
Basel-Stadt
Aargau
CH-DurchschnittSt. Gallen
Thurgau
Schaffhausen
Luzern
Schwyz
Nidwalden
Obwalden
Zug
46%
44%
42%
40%
38%
36%
34%
32%
30%
28%
26%
24%
22%
20%
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Geneva
Vaud
Basel-Stadt
Bern
Zurich
AargauSwiss averageSt. Gallen
Schwyz
Zug
Obwalden
Thurgau
Nidwalden
Neuchâtel
LucerneSchaffhausen
2018
Clarity on Swiss Taxes
23
Individual income tax rates in the cantons in 2018
40.5Jura
36.5Valais
41.3Bern
34.2Solothurn
41.5Vaud
42.2Basel-Landschaft
34.1 Aargau
37.4Basel-Stadt
31.2 Lucerne
24.3Obwalden
44.8 Geneva
Cantons with an individual income tax rate below the Swiss average (33.96%)
Figures in percent
Cantons with an individual income tax rate above the Swiss average (33.96%)
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
39.3Neuchâtel
36.0Fribourg
24
34.1 Aargau
31.2 Lucerne
39.8Zürich
32.3 Schaffhausen
32.5 Thurgau
30.5 Appenzell A.
24.9 Appenzell I.
25.6 Nidwalden
25.4 Uri 32.2
Grisons
33.5St. Gallen
31.6 Glarus
28.2 Schwyz
22.9 Zug
40.7Ticino
Clarity on Swiss Taxes
25
31.16 | 31.17Lucerne
30.48
24.86
28.21
25.35
25.55
24.30
Appenzell A.
Appenzell I.
Obwalden
Nidwalden
Uri
Schwyz
31.56Glarus
22.86
35.00
35.00
34.18
34.05
33.52
32.48
32.29
32.18
32.00
20.00
The cantons compared with European countries The tax payable on top incomes remains particularly low in the countries of (south) eastern Europe (partly due to flat rate systems). Latvia ended its flat rate tax system in 2018 and increased its tax rates – massively in some income brackets. Most of the Swiss cantons compare to the European average when it comes to top income tax rates.
23.00 | 31.40
22.00
20.00
18.00
15.00
15.00
10.00
+ 0.01
Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Jersey: income tax rate for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
Luxemburg
The Netherlands
Finland
Cyprus
Poland
Grisons
Schaffhausen
Thurgau
Aargau
Solothurn
Turkey
St. Gallen
Estonia
Bulgaria
Lithuania
Hungary
Ukraine
Jersey
Czech Republic
Zug
Latvia
36.02Fribourg
+ 8.40
26
48.00
46.72 | 46.60
46.24Iceland
Norway
Portugal
48.00Ireland
54.00 | 53.75
52.00 | 51.95
50.00
50.00
48.78 | 45.78
40.72
61.85 | 57.34
55.00
45.00
45.00
45.00
44.75
43.00
42.17
41.50
41.27
40.46
39.76
39.33
37.43
36.50 2018
+/- compared with previous year
Figures in percent
45.00
55.79 | 55.85
Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.
- 3.00
+ 0.06
Luxemburg
Belgium
Slovenia
The Netherlands
Finland
Ticino
Valais
Basel-Stadt
Neuchâtel
Zurich
Jura
Bern
Vaud
Basel-Landschaft
Italy
Geneva
Germany
UK
Spain
Austria
Denmark
Sweden
Greece
- 0.12
- 0.25
- 4.51
- 0.05
Individual income tax rates are especially high in western Europe and Scandinavia. Following significant increases in 2017, Luxembourg and Sweden cut their tax rates back down in 2018. Norway, Finland and the Netherlands also reduced their tax rates slightly once again. On average, tax rates across Europe have been stagnating in recent years, however.
Clarity on Swiss Taxes
27
45.00 45.00Australia
28.00 28.00
15.00 15.00
Global comparison (selected countries)While income tax increases remain off the table in the well-known offshore domiciles as well as several states in the Middle East, countries like South Africa, Australia, China or Japan have very high tax rates by global standards. The US also cut tax rates for natural persons this year, albeit less extensively than for companies.
0.00
13.00 13.00
20.00 20.00
27.50 27.50
30.00 30.00 33.00 33.00 33.96 33.96 35.54 35.88 39.60 37.00
45.00 45.00
45.00 45.00
55.95 55.95
Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Bahrain and Qatar: income tax rates for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.
22.00 22.00
2017
2018
Figures in percent 0.00
0.00
0.00
0.00
0.00
0.00
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
Malaysia
Hong Kong
Bahamas
Bahrain
Bermuda
Cayman Islands
Oman
Qatar
UAE
Russia
Jordan
Brazil
Indonesia
New Zealand
Swiss average
India
USA
South Africa
China
Japan
Singapore
28
39.00 45.78+ 6.78Luxembourg
30.00 35.00+ 5.00
43.00 45.00+ 2.00
Cyprus
Spain
25.00 31.40+ 6.40Latvia
45.00 36.00- 9.00Croatia
16.00 15.00-1.00Hong Kong
24.00 10.00- 14.00Bulgaria
40.00 45.00+ 5.00
40.00 45.00
18.00 20.00
45.00 45.00
35.00 37.00
41.00 48.00
+ 5.00
+ 2.00
0.00
+ 2.00
+ 7.00
- 0.89 34.85 33.96
25.00 20.00- 5.00
Trend: countries 2007 – 2018Following the introduction of flat rate taxes, the income tax rates for the highest earners have fallen massively in central Europe over the past years. Rising top income tax rates can be observed in western and southeast Europe in particular.
36.00 15.00
27.00 15.00 32.00 22.00
40.00 32.00
59.00 55.85
28.00 28.00
35.70 46.24
- 21.00
- 12.00
- 10.00
- 8.00
- 3.15
0.00
+ 10.54
Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.
2007
2018
Figures in percent
Greece
UK
Isle of Man
Germany
USA
Ireland
Swiss average
Jordan
Hungary
Lithuania
Czech Republic
Poland
Denmark
Malaysia
Iceland
Clarity on Swiss Taxes
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Clarity onInsurance DigitalizationAchieving agility: Towards a new business model
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4Seizing the opportunity Time to face the digital reality
12Interviews Gert De Winter and Adrian Honegger, Baloise Group Philomena Colatrella, CSS Francis Blumberg, Swiss Re
24Hot topics Digital labor, future customer, claims management, data and governance
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20Profitability Low levels of RoE mean shareholder value at most banks is being diluted.
28Growth AuM for the Swiss private banking industry has remained flat for six years.
36Cost efficiency Median cost-income ratio rises to its highest level for seven years.
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142017 activity and 2018 outlook Take an industry-by-industry look at past deals and what to expect over the next 12 months.
18Swiss deals in 2017 View the M&A transactions that involved a Swiss buyer, seller or target.
22Appetite for change Migros and Farmy share how changing consumer trends are shaping corporate development.
Clarity onMergers & AcquisitionsThe growing appetite of Swiss dealmakers
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September 2017
10Digitalisierung ist ein kultureller Prozess Stephan Sigrist, Gründer und Leiter Think Tank W.I.R.E., im Gespräch mit Michael Herzog
18Potenziale für das Schweizer Gesundheitswesen Einsparungen von CHF 300 Mio.
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Please contact:
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Clarity on Swiss Taxes
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