Clarity on

Swiss Taxes
Staying on course when the tide turns
 Tax Function Transforma

20
Big Data Tax

4 [Fina

[Corp

MNCs

[SMEs]

Tax Authorities]

6
 Clarity on Swiss Taxes

e d i to r i a l

Welcome

an encouraging signal for Switzerland’s future as a

business location.

Although the rejection of the Corporate Tax Reform III is a

setback, it’s not an unsurmountable one. Some cantons
have already introduced immediate measures to safeguard
their tax appeal. On a national scale, the Swiss
government cannot and will not leave companies and
investors stranded in uncertainty. At the same time, the
regulatory wave rolls on, with BEPS and Automatic
Exchange of Information bringing increased international
pressure. A new package to maintain competitiveness
Peter Uebelhart without capsizing stability is surely on the horizon.
Head of Tax, KPMG Switzerland

KPMG’s tax professionals are keenly observing the

developments in Switzerland as well as in the EU, OECD
Switzerland remains a strong competitor on the global tax and G20. Please contact us for more insights and advice
stage, according to data analyzed in KPMG’s “Swiss Tax on any tax matters.
Report 2017” . The study compares the corporate and
individual income tax rates of 130 countries and all 26
Swiss cantons.

This year’s findings cannot yet reflect the impact of recent

turbulence on the Swiss tax landscape but they do send Peter Uebelhart

3
4
5
S w i ss Ta x R e p o rt 2 01 7

Corporate
taxation
Corporate income tax

Switzerland remains competitive on the

international tax stage, especially in Europe.
A cluster of cantons in central and eastern
Switzerland retain their status as lower-tax
locations. In line with the global trend, Swiss
corporate income tax rates have dropped on
average over the past decade and continue
to creep down. It remains to be seen
whether the cantons will honor the cuts they
had announced in anticipation of CTR III.

6
Clarity on Swiss Taxes

7
Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

Which businesses are shouldering

the tax burden?
A small minority of businesses contribute the majority
of direct federal taxes, with 2.96% of corporations
carrying almost 90% of the tax burden. At the same
time, over two thirds of taxpaying corporations pay close
to no taxes at all. Around 48.4% of total contributions
(CHF 4.3 billion1) stem from privileged companies.

Contribution of businesses to tax revenues from direct federal taxes

87.86%
(by profit levels)

67.01%

Taxpayers
13.73%
10.73% Contribution to
9.59% direct federal
2.96% taxes
1.11% 5.59% 1.27%
0.17%

0 - 10 10 - 50 50 - 100 100 - 1000 1000+ Taxable profit in

CHF 1,000/year
1
according to the FTA
Note: latest available data for the tax period 2013. Source: Federal Tax Administration FTA, 2017 https://www.estv.admin.ch/estv/de/home/allgemein/
steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/dbst-jp-kantone-2013.html

8
 Clarity on Swiss Taxes

Corporate income tax rates in the cantons – 2016 and 2017

The cantons of central Switzerland continue to lead the tax league. The majority of cantons
did not make any changes to their ordinary tax rates. While Lucerne raised tax rates slightly,
Schaffhausen, Grisons and Solothurn reduced their corporate income tax rates. Only Uri
reduced its tax rate repeatedly. A further reduction is to be expected among cantons with high
taxation in the coming years.

12.32 2016
Lucerne 12.43
2017
12.66
Nidwalden 12.66 Figures in percent

12.66
Obwalden 12.66
13.04
Appenzell A. 13.04
14.16
Appenzell I. 14.16
14.60
Zug 14.60
15.01
Uri 14.92
15.27
Schwyz 15.27
15.61
Neuchâtel 15.61
15.70
Glarus 15.70
16.04
Schaffhausen 15.97
16.68
Grisons 16.12
16.43
Thurgau 16.43
17.40
St. Gallen 17.40
18.61
Aargau 18.61
19.86
Fribourg 19.86
20.66
Jura 20.66
20.67
Ticino 20.67
20.70
Basel-Landschaft 20.70
21.15
Zurich 21.15
21.85
Solothurn 21.49
21.64
Bern 21.64
21.74
Valais 21.74
22.09
Vaud 22.09
22.18
Basel-Stadt 22.18
24.16
Geneva 24.16

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for GE, JU, NE, SG, TG and ZH for 2016.
Source: KPMG Switzerland

9
 Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

Corporate income tax rates in the cantons – trend in 2007 and 2017
Besides the cantons of central Switzerland, Appenzell A., Glarus, Schaffhausen, Neuchâtel, and in particular
Grisons, have also significantly reduced their tax rates for corporations over the past ten years. In the Mittelland
region, western Switzerland and the city cantons, changes to ordinary corporate income tax rates have been
significantly smaller. Only the canton of Valais has increased its tax rates slightly over the last decade.

18.90 2007
Lucerne - 6.47 12.43
2017
13.12
Obwalden - 0.46 Figures in percent
12.66
17.27
Nidwalden - 4.61 12.66
18.04
Appenzell A. - 5.00 13.04
15.47
Appenzell I. - 1.31 14.16
16.10
Zug - 1.50 14.60
16.32
Uri - 1.40 14.92
19.76
Schwyz - 4.49 15.27
22.18
Neuchâtel - 6.57 15.61
19.98
Glarus - 4.28 15.70
22.84
Schaffhausen - 6.87 15.97
29.06
Grisons - 12.94 16.12
16.98
Thurgau - 0.55 16.43
19.08
St. Gallen - 1.68 17.40
22.32
Aargau - 3.71 18.61
21.95
Fribourg - 2.09 19.86
21.12
Jura - 0.46 20.66
22.00
Ticino - 1.33 20.67
25.65
Basel-Landschaft - 4.95 20.70
21.32
Zurich - 0.17 21.15
22.76
Solothurn - 1.27 21.49
23.40
Bern -1.76 21.64
21.57
Valais 0.17 21.74
23.53
Vaud - 1.44 22.09
24.81
Basel-Stadt - 2.63 22.18
24.24
Geneva - 0.08 24.16

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for GE, JU, NE, SG, TG and
ZH for 2016. Source: KPMG Switzerland

10
 Clarity on Swiss Taxes

Corporate income tax rates in the cantons – trend from 2007 to 2017
The corporate income tax rates continue to drop slightly on average.

-  2.99%

20.76%
19.44%
18.96% 18.70% 18.31% 18.06% 18.01% 17.90% 17.89% 17.80% 17.77%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for GE, JU, NE, SG, TG
and ZH for 2016. Source: KPMG Switzerland

30%

Corporate income tax rates in the cantons – trend from 2007 to 2017 Genf
After smaller reductions in 2016, corporate tax rates look set to remain stable in
28%
2017. Only Schaffhausen and Grisons saw renewed reductions, while Lucerne Basel-Stadt
increased its tax rates.
Waadt
26%
Bern

24% Geneva Zürich

Aargau
Basel-Stadt
22% Vaud CH Durchschnitt
Bern
Zurich St. Gallen

20% Graubünden

Aargau Schaffhausen
18%
Neuenburg
CH-Average
St. Gallen
Schwyz
Grisons
16% Schaffhausen
Zug
Neuchâtel
Schwyz
Zug Nidwalden
14%
Obwalden
Nid-/Obwalden
LucerneLuzern
12%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for GE, JU, NE, SG, TG
and ZH for 2016. Source: KPMG Switzerland

11
Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

Corporate income tax rates in the cantons in 2017

Cantons with a corporate income tax rate above the Swiss average (17.77%)
Cantons with a corporate income tax rate below the Swiss average (17.77%)
22.2
Figures in percent
Basel-Stadt

18.6
20.7 Aargau

20.7 Basel-Landschaft

Jura

21.5
Solothurn

12.4
Lucerne

15.6
Neuchâtel

21.6 12.7
Obwalden
Bern

19.9
22.1
Fribourg

Vaud

21.7
Valais

24.2
Geneva

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the
respective cantonal capital. Corporate income tax figures for GE, NE, SG, TG, ZH for
2016. Source: KPMG Switzerland

12
 Clarity on Swiss Taxes

16.0
Schaffhausen

16.4
Thurgau

21.2 13.0
Appenzell A.
Zurich

14.2
17.4 Appenzell I.

St. Gallen

14.6
Zug
15.3
Schwyz
15.7
12.7 Glarus
Nidwalden

14.9
16.1
Uri

Grisons

20.7
Ticino

13
Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

Which tax rates had

been announced for

22.18
CTR I I?

13.04

20.70
BS

14.00
Announced corporate tax rate reduction

21.49
The majority of cantons had announced
their corporate income tax rates as of BL
2019 assuming CTR III was approved.

12.90
Since this was not the case it is
questionable whether the cantons will
stick to the announced rates.
SO
15.61
15.61

NE

21.64
19.86
22.09

16.37
13.72
13.79

FR BE
24.16

VD
13.49*

GE

* 13.79% in the first 5 years

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal
capital. Corporate income tax figures for GE, NE, SG, TG, ZH for 2016. Source: KPMG Switzerland.

14
 Clarity on Swiss Taxes

Corporate income taxation within

the cantons 2017 vs 2019
Figures in percent
15.97
12.50

SH 16.43
13.42
21.15

TG
18.20

17.40
15.00

ZH
14.60
12.00
12.43
12.43

ZG SG
LU
12.66
12.66

NW
20.67
16.20

TI

15
Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

The cantons and European countries compared

Overall, the European tax landscape shows quite a few changes that mix up the ranking in 2017. Led by
the huge ten-percentage-point drop from Hungary, the upper half also includes a two percentage-point
drop from Croatia. Nevertheless, the cantons of central Switzerland are not lacking in attractiveness. Lower
income tax rates in the international sphere are applied in particular by the Channel Islands and the countries
of Southeast Europe. Ireland remains the most significant competitor for Switzerland.

Guernsey +/– 0
Montenegro 9.00
Hungary 19.00  |  9.00 - 10.00
Bulgaria 10.00
Lucerne 12.32  |  12.43 + 0.11
Ireland 12.50
Liechtenstein 12.50
Cyprus 12.50
Nidwalden 12.66
Obwalden 12.66
Appenzell A. 13.04
Appenzell I. 14.16
Zug 14.60
Uri 15.01  |  14.92 - 0.09
Albania 15.00
Lithuania 15.00
Serbia 15.00
Schwyz 15.27
Neuchâtel 15.61
Glarus 15.70
Schaffhausen 16.04  |  15.97 - 0.07
Romania 16.00
Grisons 16.68  |  16.12 - 0.56
Thurgau 16.43
St. Gallen 17.40
Croatia 20.00  |  18.00 - 2.00
Ukraine 18.00
Aargau 18.61
Poland 19.00

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 Albania, NE, SG and TG for 2016. 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

16
 Clarity on Swiss Taxes

Countries in the lower half of the ranking also amended tax rates in 2017. While the UK, Slovakia,
Norway, Luxembourg and especially Italy reduced tax by between one and seven-point-four
percentage points, Slovenia was the only one to increase the rate.

2017
Slovenia 17.00  |  19.00 + 2.00
+/- compared with
UK 20.00  |  19.00 - 1.00 previous year
Fribourg 19.86 Figures in percent
Estonia 20.00
Turkey 20.00
Jura 20.66
Ticino 20.67
Basel-Landschaft 20.70
Slovakia 22.00  |  21.00 - 1.00
Zurich 21.15
Solothurn 21.85  |  21.49 - 0.36
Bern 21.64
Valais 21.74
Denmark 22.00
Sweden 22.00
Vaud 22.09
Basel-Stadt 22.18
Norway 25.00  |  24.00 - 1.00
Italy 31.40  |  24.00 - 7.40
Geneva 24.16
The Netherlands 25.00
Austria 25.00
Spain 25.00
Luxembourg 29.22  |  27.08 - 2.14
Greece 29.00
Germany 29.72  |  29.79 + 0.07
France 33.33
Malta 35.00

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
The Netherlands, Spain, GE, JU and ZH for 2016. 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

17
Pa r t I C o rp o r at e ta x at i o n : c o rp o r at e i n c o m e ta x

Global comparison – selected countries

Hong Kong and Singapore are considered attractive tax locations, comparable to
known offshore domains such as Bermuda or Dubai. Internationally, Switzerland falls
within the middle range with its tax rates.

2017
Bahamas 0.00
+/- compared with
Bahrain 0.00 previous year
Bermuda 0.00 Figures in percent
Cayman Islands 0.00
Dubai 0.00
Qatar 10.00
Hong Kong 16.50
Singapore 17.00
Swiss average 17.80  |  17.77 - 0.03
Russia 20.00
Malaysia 24.00
China 25.00
Indonesia 25.00
Panama 25.00
Canada 26.50
South Africa 28.00
Australia 30.00
Japan 30.86
Brazil 34.00
India 34.61
USA 40.00

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 Russia for 2016. 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

Trends: countries 2007 – 2017

Few countries have increased their corporate tax rates in recent years. Hungary, which until now had
raised its taxes, cut its corporate tax rates by 7% this year.

28.00 2007
Mexico + 2.00 30.00 2017
18.00
Iceland + 2.00 Figures in percent
20.00
19.00
Slovakia + 2.00 21.00
25.00
Greece + 4.00 29.00
17.00
Chile + 8.50 25.50

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes 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/corporate-tax-rates-table.html

18
 Clarity on Swiss Taxes

Trends: countries 2007 – 2017

The states in the Middle East have made the most impressive cuts in taxation
over the past ten years, with the largest drop seen in Kuwait (40%). The UK has
announced its intention to cut the corporate income tax rate to 17% by 2020 and
Hungary has already enacted a decrease to 9% this year.

55.00
Kuwait - 40.00 15.00
35.00
Gibraltar - 25.00 10.00
35.00
Qatar - 25.00 10.00
37.25
Italy - 13.25 24.00
30.00
UK - 11.00 19.00
40.69
Japan - 9.83 30.86
38.36
Germany - 8.57 29.79
33.00
China - 8.00 25.00
16.00
Hungary - 7.00 9.00
28.00
Sweden - 6.00 22.00
27.50
South Korea - 5.50 22.00
25.00
Jordan - 5.00 20.00
24.00
Russia - 4.00 20.00
27.00
Malaysia - 3.00 24.00
20.00
Singapore - 3.00 17.00
20.76
Swiss average - 2.99 17.77
29.63
Luxembourg - 2.55 27.08
17.50 2007
Hong Kong - 1.00 16.50
2017
25.50
The Netherlands - 0.50 25.00 Figures in percent

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 The Netherlands, Gibraltar and Russia for 2016. 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

19
Pa r t II  S w i ss Ta x R e p o rt 2 01 7

Individual
taxation
Income tax

On a global scale the Swiss cantons are

rated among the most attractive in terms
of tax rates for high-income individuals.
The moderate downward trend of the
Swiss average individual tax rates looks to
be leveling off in 2017. Nevertheless, the
tax burden is still borne by the wealthiest
1% of the Swiss population.

20
Clarity on Swiss Taxes

21
Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

Who shoulders the tax

burden in Switzerland?
Approximately 3.55% of taxpayers – i.e. the
highest-income individuals – account for more
than 50% of the direct individual tax.

Contribution of individuals to tax revenues from direct federal taxes 52.54%

(by income bracket)

35.39%

26.21%

16.52%
15.64%
14.98%

12.81%

Taxpayers
8.36%
7.09%
Contribution to
direct federal
4.23% taxes
3.55%
2.68%
Taxable income in
0 - 50 50 - 75 75 - 100 100 - 150 150 - 200 200+ CHF 1,000 / year

Note: latest available data for the tax period 2013. Source: Federal Tax Administration FTA, 2017: https://www.estv.admin.ch/estv/de/home/allgemein/
steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2013.html

22
 Clarity on Swiss Taxes

78.70
99  - 100

The 10% with the highest income account for

almost 80% of the direct individual tax burden.
The 1% with the highest income bear 41.3%
(prior year 41%) of the tax burden.

Contribution of individuals to tax revenues from direct federal taxes

41.30
(by income bracket)

Figures in percent

98  - 99

11.30

97  - 98

7.00

96  - 97
5.00

95  - 96
3.70
9.69
90  - 95

4.65
10.50
2.81 6.95
1.78
0.67 1.05
0.00 0.18 0.38
Percentage share of
taxpayers in direct
0 10 20 30 40 50 60 70 80 90 100 federal taxes

Note: latest available data for the tax period 2013, 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, 2017: https://www.estv.admin.ch/estv/de/home/
allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2013.html

23
 Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

Income tax rates in the cantons – 2016 and 2017

The cantons of central Switzerland continue to have the lowest tax rates. Uri, Grisons and
Schaffhausen have lowered their individual tax rates. As with the corporate tax rate, Lucerne
was the only canton to raise the tax rate for individuals. The highest individual tax rates are
seen in cantons that also have the highest corporate tax rates.

22.86 2016
Zug 22.86
2017
24.30
Obwalden 24.30 Figures in percent

25.02
Appenzell I. 25.02
25.49
Uri 25.35
25.55
Nidwalden 25.55
28.21
Schwyz 28.21
30.48
Appenzell A. 30.48
31.56
Glarus 31.56
31.17
Lucerne 31.74
32.40
Grisons 32.18
32.49
Schaffhausen 32.29
32.48
Thurgau 32.48
33.52
St. Gallen 33.52
34.05
Aargau 34.05
34.50
Solothurn 34.18
36.02
Fribourg 36.02
36.50
Valais 36.50
37.43
Basel-Stadt 37.43
39.04
Neuchâtel 39.33
39.76
Zurich 39.76
40.46
Jura 40.46
40.72
Ticino
40.72
41.27
Bern 41.27
41.50
Vaud 41.50
42.17
Basel-Landschaft 42.17
44.75
Geneva 44.75

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax rates for AI and SG are for
2016. Source: KPMG Switzerland

24
 Clarity on Swiss Taxes

Income tax rates in the cantons – trend from 2007 to 2017

The average individual tax rate appears to be stagnating at a value
of 33.99% over the past two years.

-  0.86%

34.85% 34.61% 34.25% 34.05% 33.84% 33.86% 33.98% 33.99% 33.99%

33.76% 33.77%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax rates for AI and SG are for 2016.
Source: KPMG Switzerland

25
 Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

Income tax rates in the cantons – trend from 2007 to 2017

The central Swiss cantons have been leading the individual tax ranking for over a decade. Apart
from Uri, the other cantons have made no or only minor reductions in income tax rates. Obwalden,
Schaffhausen and Schwyz are the only cantons to have actually increased their tax rates. Little to no
variation can be found in the cantons with traditionally higher individual income taxes.

23.10 2007
Zug 22.86
2017
24.01
Obwalden 24.30 Figures in percent

26.14
Appenzell I. 25.02
33.00
Uri 25.35
26.74
Nidwalden 25.55
25.19
Schwyz 28.21
31.26
Appenzell A. 30.48
34.49
Glarus 31.56
32.55
Lucerne 31.74
32.95
Grisons 32.18
25.20
Schaffhausen 32.29
35.63
Thurgau 32.48
36.16
St. Gallen 33.52
36.84
Aargau 34.05
36.47
Solothurn 34.18
36.33
Fribourg 36.02
37.00
Valais 36.50
38.91
Basel-Stadt 37.43
39.34
Neuchâtel 39.33
40.16
Zurich 39.76
43.54
Jura 40.46
41.02
Ticino
40.72
41.28
Bern 41.27
41.50
Vaud 41.50
42.55
Basel-Landschaft 42.17
44.76
Geneva 44.75

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax rates for AI and SG are
for 2016. Source: KPMG Switzerland

26
 Clarity on Swiss Taxes

Income tax rates in the cantons – trend from 2007 to 2017

With the exception of a distinguishable upward trend in the individual income tax rates of Schaffhausen
and Schwyz, and a downward trend in Aargau, Thurgau and St. Gallen, the tax rates have remained fairly
consistent in the Swiss cantons.

45% Geneva

Vaud
Bern
40% Zurich
Neuchâtel

Basel-Stadt

35% Aargau
Swiss average
St. Gallen
Thurgau
Schaffhausen
Lucerne
30%

Schwyz

Nidwalden
25%
Obwalden

Zug

20%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax rates for AI and SG
are for 2016. Source: KPMG Switzerland

27
Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

Individual income tax rates in the cantons in 2017

Cantons with an individual income tax rate above the Swiss average (33.99%)
Cantons with an individual income tax rate below the Swiss average (33.99%)
37.4
Figures in percent
Basel-Stadt

34.0
42.2 Aargau

Basel-Landschaft
40.5
Jura

34.2
Solothurn

31.7
Lucerne

39.3
Neuchâtel

41.3 24.3
Obwalden
Bern

36.0
41.5 Fribourg
Vaud

36.5
Valais

44.8
Geneva

Note: max. income tax rates for single taxpayers with no children and no religious
denomination living in the respective cantonal capital. Income tax rates for AI and SG
are for 2016. Source: KPMG Switzerland

28
 Clarity on Swiss Taxes

32.3
Schaffhausen

32.5
Thurgau

39.8 30.5
Appenzell A.
Zurich

25.0
33.5 Appenzell I.

St. Gallen
22.9
Zug

28.2
Schwyz
31.6
25.6 Glarus
Nidwalden

25.4
32.2
Uri

Grisons

40.7
Ticino

29
Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

The cantons and European countries compared

The individual income tax rates continue to be particularly low in the countries of Southeast Europe. As
with corporate taxation, most of the Swiss cantons lie in the middle in terms of individual income tax rates.
Western European and Scandinavian countries levy income tax at relatively high rates. Although already
ranking among the countries with the top rates, Luxembourg and Sweden increased their tax rates in 2017.
The annual tax adjustments in Finland and Denmark resulted in a reduction this time.

Bulgaria 10.00

Hungary 15.00

Lithuania 15.00

Ukraine 18.00

Jersey 20.00

Estonia 20.00

Czech Republic 22.00

Zug 22.86

Latvia 23.00

Obwalden 24.30

Appenzell I. 25.02

Uri 25.49  |  25.35 - 0.14

Nidwalden 25.55

Schwyz 28.21

Appenzell A. 30.48

Glarus 31.56

Lucerne 31.17  |  31.74 + 0.57

Poland 32.00

Grisons 32.40  |  32.18 - 0.22

Schaffhausen 32.49  |  32.29 - 0.20

Thurgau 32.48

St. Gallen 33.52

Aargau 34.05

Solothurn 34.50  |  34.18 - 0.32

Cyprus 35.00

Turkey 35.00

Fribourg 36.02

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Appenzell I., St. Gallen: income
tax rates for 2016. 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

30
 Clarity on Swiss Taxes

2017
Valais 36.50
+/- compared with
Basel-Stadt 37.43 previous year

Neuchâtel 39.04  |  39.33 + 0.29 Figures in percent

Zurich 39.76

Jura 40.46

Ticino 40.72

Bern 41.27

Vaud 41.50

Basel-Landschaft 42.17

Italy 43.00

Geneva 44.75

Germany 45.00

Spain 45.00

UK 45.00

Greece 45.00

Iceland 46.25  |  46.24 - 0.01

Norway 46.90  |  46.72 - 0.18

Portugal 48.00

Ireland 48.00

Luxembourg 44.00  |  48.78 + 4.78

Slovenia 50.00

Belgium 50.00

The Netherlands 52.00

Finland 54.25  |  54.00 - 0.25

Austria 55.00

Denmark 56.40  |  55.79 - 0.61

Sweden 57.10  |  61.85 + 4.75

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Portugal, Slovenia: income tax
rates for 2016. 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

31
Pa r t II  I n d i v i du a l ta x at i o n : i n c o m e ta x

Global comparison (selected countries)

While the well-known offshore domains continue to reject the idea of introducing individual
income taxes, countries such as Japan or South Africa show very high income taxes in a
global comparison.

Bahamas 0.00 2016

2017
Bahrain 0.00
Figures in percent
Bermuda 0.00

Cayman Islands 0.00

Oman 0.00

Qatar 0.00

UAE 0.00

13.00
Russia 13.00
15.00
Hong Kong 15.00
20.00
Jordan 20.00
22.00
Singapore 22.00
27.50
Brazil 27.50
28.00
Malaysia 28.00
30.00
Indonesia 30.00
33.00
New Zealand 33.00
33.99
Swiss average 33.99
35.54
India 35.54
39.60
USA 39.60
45.00
China 45.00
45.00
Australia 45.00
41.00
South Africa 45.00
55.95
Japan 55.95

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Australia, Bahamas, Bahrain, Hong Kong, Japan,
Oman, Qatar, UAE: income tax rates for 2016. 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

32
 Clarity on Swiss Taxes

Trends: countries 2007 – 2017

The introduction of a flat rate tax affected Eastern European countries most, with a significant decline
in the tax rates of Bulgaria, Hungary, Lithuania and the Czech Republic. Especially in Western Europe,
income taxes have risen.

36.00 2007
Hungary - 21.00 15.00
2017
24.00
Bulgaria - 14.00 Figures in percent
10.00
27.00
Lithuania - 12.00 15.00
32.00
Czech Republic - 10.00 22.00
40.00
Poland - 8.00 32.00
25.00
Jordan - 5.00 20.00
45.00
Croatia - 5.00 40.00
59.00
Denmark - 3.21 55.79
25.00
Latvia - 2.00 23.00
16.00
Hong Kong -1.00 15.00
34.85
Swiss average - 0.86 33.99
28.00
Malaysia 0.00 28.00
45.00
Germany 0.00 45.00
43.00
Spain + 2.00 45.00
18.00
Isle of Man + 2.00 20.00
35.00
USA + 4.60 39.60
40.00
UK + 5.00 45.00
40.00
Greece + 5.00 45.00
30.00
Cyprus + 5.00 35.00
41.00
Ireland + 7.00 48.00
39.00
Luxembourg + 9.78 48.78
35.70
Iceland + 10.54 46.24

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Croatia, Hong Kong: income tax rates for 2016.
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

33
p i nb oa r d

“Clarity on” publications

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For more information, please contact kpmgpublications@kpmg.com.

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 Clarity on Swiss Taxes

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Clarity on Swiss Taxes

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