Clarity on Swiss Taxes · Individual taxation Clarity on Swiss Taxes 3. Corporate taxation SWISS...
Transcript of Clarity on Swiss Taxes · Individual taxation Clarity on Swiss Taxes 3. Corporate taxation SWISS...
Clarity onSwiss TaxesPlaying to natural strengths
16
Individual taxation
4
Corporate taxation
E D ITO R I A L
Switzerland remains competitive on the global tax stage according to KPMG’s “Swiss Tax Report 2019”. This annual study analyzes corporate and individual tax rates in Switzerland and internationally, analyzing data to draw comparisons between locations.
After a long and drawn-out reform process, the Swiss Federal Act on Tax Reform and AHV Financing (TRAF) is reaching the final stages of maturity. Some cantons have already responded by adjusting their corporate tax rates, and others are sure to follow in 2019 and 2020. These steps towards lower tax rates confirm that the Swiss cantons are committed to competitive taxation. This will be welcomed by companies as they seek stability amid the turbulence of global protectionist trends, like tariffs, Brexit and digital service tax.
It’s not just in Switzerland that tax laws are being revised. The national reforms of recent years are part of a global shift towards international harmonization but also increased legislation. For tax departments, these regulatory developments mean increased pressure. Their challenge is to safeguard compliance, while also managing the risk of double or over-taxation. In our fast-paced world, data-driven technology and digital enablers will play an increasingly important role in achieving these aims.
Going forward, it’s important that Switzerland continues to play to its natural strengths to remain an attractive business location and global trading partner. That means creating certainty by finalizing the corporate tax reform, building further on its network of FTAs, delivering its “open for business” message and pressing ahead with the Digital Switzerland strategy.
Our multidisciplinary teams closely follow shifts in the international and Swiss tax landscape, seek innovative ways to respond to change, and deliver expert advice – whatever your current tax topic.
Peter Uebelhart
Peter UebelhartHead of Tax & Legal, KPMG Switzerland
Welcome
Individual taxation
Clarity on Swiss Taxes
3
Corporate taxation
S W I S S TA X R E P O RT 2 019
Corporate income tax
Attractive tax rates remain a natural strength in Switzerland. With some cantons already preparing for the changes that Switzerland’s new tax law will bring, the cluster of lower tax cantons in central and eastern Switzerland is less striking due to lower rates overall. Switzerland compares favorably to most of Europe and is likely to retain this position even as countries like the UK and France successively lower their rates.
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Clarity on Swiss Taxes
5
0.16%
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)
67.43%
13.47%
5.53%
9.43%10.77%
88.08%
1.08% 1.24%2.80%
0 - 10 10 - 50 50 - 100 1000+
Taxpayers
Contribution to direct federal taxes
Taxable profit in CHF 1,000/year
Note: Latest available data for the tax period 2015. Source: Swiss Federal Tax Administration FTA, 2019, https://www.estv.admin.ch/estv/de/home/allgemein/ steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/dbst-jp-kantone-2015.html.
While over two-thirds of taxable companies pay virtually no tax, 2.80% carry around 90% of the total direct (federal) tax burden. This means the tax burden is shouldered by an even smaller number of companies than in the prior year (2018: 2.93%).
Which businesses are shouldering the tax burden in Switzerland?
6
22.1813.04Basel-Stadt
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, GL, NE, GE, JU and SG for 2018. The income tax rate of Schaffhausen is based on the tax rate before the vote on 24 March 2019. Source: KPMG Switzerland.
20.5320.53Jura
16.1216.12Grisons
14.9214.92Uri
12.3212.32
12.6612.66
12.7412.74
13.0413.04
14.1614.16
14.5114.35
15.1915.02
15.6115.61
15.7015.68
15.7515.82
16.4316.43
17.4017.40
18.6118.61
19.8619.86
20.5520.55
20.7020.70
21.1521.15
21.3821.38
21.6421.63
21.7421.74
21.3714.00
24.1624.16
2018
2019
Corporate income tax rates in the cantons – 2018 and 2019 The cantons of central Switzerland continue to dominate in terms of lowest ordinary corporate income tax rates. Tax rates in these cantons were generally stable, with very modest downward adjustments in Zug, Schwyz and Glarus only, and a negligible increase in Schaffhausen. Basel-Stadt and Vaud stand out for their drastic tax cut rates (from 22.18% to 13.04% and 21.37% to 14.00%, respectively) in anticipation of the changes to come from TRAF. Further cuts are expected in higher tax cantons, including Geneva, Bern and Zurich, also in connection with TRAF.
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
Geneva
Figures in percent
Clarity on Swiss Taxes
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Obwalden
Solothurn
Jura
Basel-Landschaft
Aargau
Corporate income tax rates in the cantons – trend 2007 to 2019 Ordinary corporate income tax rates barely changed in the Mittelland, Western Switzerland and city cantons. Only Bern, Uri and Ticino cut rates more extensively. Corporate income tax rates fell particularly sharply in Neuchâtel, Schaffhausen, Grisons, Basel-Stadt and Vaud. It is interesting to note that 12% has become established as the minimum rate in practice.
Valais
Geneva
Zurich
Appenzell I.
Uri
Ticino
St. Gallen
Zug
Bern
Fribourg
Glarus
Nidwalden
Schwyz
Appenzell A.
Neuchâtel
Lucerne
Schaffhausen
Vaud
Basel-Stadt
Thurgau
Grisons
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, GE, GL, JU, NE and SG for 2018. Source: KPMG Switzerland.
2007
2019
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
18.04 13.04- 5.00
23.53 14.00
17.27 12.66
- 9.53
18.90 12.32
19.76 15.02
22.18 15.61
19.98 15.68
22.84 15.82
29.06 16.12
22.32 18.61
21.95 19.86
25.65 20.70
24.81 13.04
- 6.58
- 4.61
- 4.74
- 6.57
- 4.30
- 7.02
- 3.71
- 2.09
- 4.95
- 11.77
- 12.94
21.57 21.74
+ 0.17
24.24 24.16- 0.08
21.32 21.15- 0.17
13.12 12.74- 0.38
16.98 16.43- 0.55
21.12 20.53- 0.59
15.47 14.16- 1.31
22.76 21.38-1.38
16.32 14.92- 1.40
22.00 20.55- 1.45
19.08 17.40- 1.68
16.10 14.35- 1.75
23.40 21.63-1.77
8
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, GE, GL, JU, NE and SG for 2018. Source: KPMG Switzerland.
Corporate income tax rates in the cantons – trend 2007 to 2019The recent dip in average Swiss tax rate is attributable primarily to the cuts in Basel-Stadt and Vaud. The trend is set to continue with a larger fall in 2020 when new legislation (TRAF) is expected to come into force.
Corporate income tax rates in the cantons – trend 2007 to 2019 The trend towards stagnation of corporate tax rates continues in 2019. Only Basel-Stadt and Vaud reduced their corporate tax rates.
Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, GE, GL, JU, NE and SG for 2018. Source: KPMG Switzerland.
28%
24%
20%
16%
12%
8%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Luzern
Nidwalden
Obwalden
Appenzell A.(AR)
Appenzell I.(AI)
Zug
Uri
Schwyz
Neuenburg
Glarus
Schaffhausen
Graubünden
Thurgau
St. Gallen
Aargau
Freiburg
Jura
Tessin
Basel-Landschaft
Zürich
Waadt
Lucerne
Nidwalden
Obwalden
Appenzell A.
Appenzell I.
Zug
Uri
Schwyz
Neuchâtel
Glarus
Schaffhausen
Grisons
Thurgau
St. Gallen
Aargau
Fribourg
Jura
Ticino
Basel-Landschaft
Zurich
Vaud
17.74% 17.71%
19.44%
20.76%
18.70%18.96%
18.06%18.31%
17.90%18.01%17.80%17.89%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
17.06%
2019
– 3.70%
Clarity on Swiss Taxes
9
Corporate income tax rates in the cantons 2019
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
20.5Jura
19.9Fribourg
21.7Valais
21.6Bern
21.4Solothurn
14.0Vaud
20.7Basel-Landschaft
18.6Aargau 21.2
Zurich
13.0Basel-Stadt
15.8Schaffhausen
16.4Thurgau
13.0Appenzell A.
14.2Appenzell I.
12.3Lucerne
12.7Obwalden
12.7Nidwalden
14.9Uri 16.1
Grisons
17.4St. Gallen
15.7Glarus
15.0Schwyz
14.4Zug
15.6Neuchâtel
20.6Ticino
24.2Geneva
Cantons with a corporate income tax rate below the Swiss average (17.06%)
Figures in percent
Cantons with a corporate income tax rate above the Swiss average (17.06%)
Clarity on Swiss Taxes
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Norway
Sweden
15.75 | 15.82
- 7.37
15.19 | 15.02
+ 0.07
16.12
16.43
16.00
15.70 | 15.68
14.92
15.00
15.00
15.00
15.61
18.00
The cantons compared with European countries The comparison with Europe shows hardly any change in lower tax rates, with the cantons of central Switzerland enjoying a particularly positive position. They are joined now by Basel-Stadt and Vaud. 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, with only minimal changes in income tax rates to report in some of the Swiss cantons.
17.40
14.51 | 14.35
14.16
12.66
12.50
12.50
12.50
12.32
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 Hungary, Liechtenstein, Albania, Ukraine, NE, AI, GL and SG for 2018. 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
- 0.16
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
Appenzell A.
Greece
Bern
Geneva
Fribourg
Basel-Landschaft
Slovakia
Turkey
Ticino
Zurich
Valais
Jura
Denmark
The Netherlands
Austria
Luxembourg
Germany
Spain
Italy
France
Malta
9.00
- 0.17
22.18 | 13.04Basel-Stadt - 9.14
21.37 | 14.00Vaud
- 0.02
Solothurn
12
23.00 | 22.00Norway
- 0.01
- 0.60 22.00 | 21.40Sweden
19.00
19.00UK
Slovenia
19.86
29.00 | 28.00
21.64 | 21.63
20.70
20.55
22.00
21.00
24.16
35.00
33.00 | 31.00
24.00
25.00
30.00
26.01
25.00
25.00
22.00
21.74
21.15
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. 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
Bern
Geneva
Fribourg
Basel-Landschaft
Slovakia
Turkey
Ticino
Zurich
Valais
Jura
Estonia
Denmark
The Netherlands
Austria
Luxembourg
Germany
Spain
Italy
France
Malta
- 1.00
- 1.00
2019
+/- compared with previous year
Figures in percent
At the lower end of the attractiveness ranking for ordinary corporate tax rates are various European countries. Norway, France and Sweden reduced their rates once again in 2019, with France planning successive cuts to bring its rate down to 25% by 2022.
- 2.00
21.38Solothurn
19.00Poland
18.61Aargau
Clarity on Swiss Taxes
13
35.00 | 30.00
27.00USA
30.86 | 30.62
34.00
30.00
28.00
26.50
India
Brazil
Canada
South Africa
Australia
Japan
17.00 27.00+ 10.00
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 Bermuda and UAE for 2018. 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) The traditional 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 – this year with a lower average tax rate overall thanks mainly to cuts in Basel-Stadt and Vaud.
25.00
25.00
24.00
20.00
17.71 | 17.06
17.00
16.50
10.00
25.00
0.00
0.00
0.00
0.00
0.00
- 0.65
Trend: countries 2007 – 2019Only a few countries have actually increased their corporate income tax rates since 2007. Even then increases have generally been modest (2% to 3%), with the exception of Chile, which has increased its rate by 10% in total since 2007.
28.00 30.00 18.00 20.00
25.00 28.00
19.00 21.00
+ 2.00
+ 2.00
+ 4.00
+ 3.00
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
2019
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
2019
+/- compared with previous year
Figures in percent
- 0.24
55.00UAE
- 5.00
14
17.50 16.50- 1.00
25.50 25.00- 0.50
Hong Kong
The Netherlands
20.76 17.06- 3.70Swiss average
27.00 24.00 20.00 17.00
- 3.00
- 3.00
Malaysia
Singapore
29.63 26.01- 3.62
33.00 25.00- 8.00
- 6.60
38.36 30.00- 8.36
24.00 20.00- 4.00
16.00 9.00- 7.00
40.69 30.62- 10.07
25.00 20.00- 5.00
Trend: countries 2007 – 2019In recent years, corporate income taxes have seen huge reductions, especially in the Middle East and, with its reform now implemented, the US. The UK and France have also already announced larger cuts.
55.00 15.00 35.00 10.00 35.00 10.00 37.25 24.00
28.00 21.40
- 40.00
- 25.00
- 25.00
- 13.25
30.00 19.00- 11.00
2007
2019
Figures in percent
Luxembourg
China
Sweden
Germany
Russia
Hungary
Japan
Jordan
Kuwait
Gibraltar
Qatar
Italy
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 South Korea, Hungary and Qatar for 2018. Sources: KPMG Switzerland, KPMG International, https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corpora-te-tax-rates-table.html.
40.00 27.00- 13.00USA
33.00 31.00- 2.00France
Clarity on Swiss Taxes
15
Individual taxationIncome tax
Income tax rates in Switzerland and internationally are generally stable, with the significant decrease in the canton of Nidwalden a striking exception. 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 2 019
16
Clarity on Swiss Taxes
17
53.09%
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
2.60%
34.87%
7.00%
26.28%
8.23%
15.67%16.25%
15.17%
12.83%
4.36%
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 2015. Source: Federal Tax Administration FTA, 2019, https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2015.html.
3.66%
75 - 100 100 - 150 150 - 200 200+
Contribution of individuals to tax revenues from direct federal taxes
(by income bracket)
In Switzerland, 3.66% 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
0.17
4.99
6.95
Contribution of individuals to tax revenues from direct federal taxes
0.00
Percentage share of taxpayers in direct federal taxes
Note: latest available data for the tax period 2015, 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, 2019, https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer.html.
0.37 0.66 1.04 1.772.78
4.59
9.63
10.57
3.73
7.07
10 200 30 40 50 60 70 80 90
97 - 98
96 - 97
95 - 96
90 - 95
11.31
100
Figures in percent
The 10% of taxpayers with the highest income shoulder the burden for almost 80% of direct federal taxes from natural persons, while the top 1% in terms of income contribute 41.33% (prior year 42.74%).
41.33
79.45
99 - 100
98 - 99
Clarity on Swiss Taxes
19
32.2931.89Schaffhausen
31.1731.16Lucerne
40.4640.15
25.5525.55
24.8624.86
22.8622.38
24.3024.30
25.3525.35
28.2127.53
30.4830.74
31.5631.56
32.1832.18
32.4832.48
33.5233.52
34.0534.38
34.1833.97
36.0236.02
36.5036.50
37.4337.36
39.3338.09
39.7639.76
40.7241.77
41.2741.27
41.5041.50
42.1742.17
44.7544.75
2018
2019
Income tax rates in the cantons – 2018 and 2019The cantons of central Switzerland also lead the tax league for individual taxation. Overall, tax rates in the lower tax cantons were very stable, with some tiny downward movements and one marginal increase (in Appenzell Ausserrhoden). The highest cantonal tax rates for individuals are found in Western Switzerland and the Mittelland region. Rates increased in Aargau and Ticino, but fell in Jura and Neuchâtel.
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax figures for AI, GL, OW, SG and UR for 2018. 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
St. Gallen
Aargau
Solothurn
Fribourg
Valais
Basel-Stadt
Zurich
Neuchâtel
Ticino
Bern
Vaud
Basel-Landschaft
Geneva
20
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Income tax figures for AI, GL, OW, SG and UR for 2018. Source: KPMG Switzerland.
Income tax rates in the cantons – trend 2007 to 2019Following two years without change in the average maximum tax rates, the figure has decreased slightly but remains stable.
– 0.96%
33.96% 33.96%
34.61%34.85%
34.05%34.25%
33.76%33.84% 33.86%33.77%33.99%33.98% 33.89%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Clarity on Swiss Taxes
21
41.0241.77
Ticino
36.8434.38Aargau
32.9532.18Grisons
32.5531.16Lucerne
25.2031.89Schaffhausen
26.1424.86
23.1022.38
24.0124.30
26.7425.55
33.0025.35
25.1927.53
31.2630.74
34.4931.56
35.6332.48
36.1633.52
36.4733.97
36.3336.02
37.0036.50
38.9137.36
39.3438.09
40.1639.76
43.5440.15
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. AI, GL, OW, SG and UR: income tax rates for 2018. 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
2019
Figures in percent
Income tax rates in the cantons – trend 2007 to 2019The cantons of central Switzerland have occupied the top spots in the tax attractiveness ranking for over a decade. Various cantons of eastern Switzerland have reduced their income tax rates, while Obwalden, Schwyz and Schaffhausen have increased theirs. There has been very little movement in the higher tax cantons over the last 12 years. Neuchâtel, Bern, Vaud and Geneva have maintained the same rates for this entire period.
Appenzell I.
Obwalden
Zug
Nidwalden
Uri
Schwyz
Appenzell A.
Glarus
Thurgau
St. Gallen
Solothurn
Fribourg
Valais
Basel-Stadt
Zurich
Neuchâtel
Jura
Bern
Vaud
Basel-Landschaft
Geneva
22
Income tax rates in the cantons – trend 2007 to 2019The 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.
Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. AI, GL, OW, SG and UR: income tax rates for 2018. Source: KPMG Switzerland.
Geneva
Vaud
Basel-Stadt
Bern
Zurich
AargauSwiss averageSt. Gallen
Schwyz
Zug
Obwalden
Thurgau
Nidwalden
Neuchâtel
LucerneSchaffhausen
50%
45%
40%
35%
30%
25%
20%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Clarity on Swiss Taxes
23
I N D I V I D UA L TA X AT I O N : I N C O M E TA X
Individual income tax rates in the cantons 2019
24
Cantons with an individual income tax rate below the Swiss average (33.89%)
Figures in percent
Cantons with an individual income tax rate above the Swiss average (33.89%)
40.2Jura
36.5Valais
41.3Bern
34.0Solothurn
41.5Vaud
42.2Basel-Landschaft
34.4 Aargau
37.4Basel-Stadt
31.2 Lucerne
24.3Obwalden
44.8 Geneva
39.8Zurich
31.9 Schaffhausen
32.5 Thurgau
30.8 Appenzell A.
24.9 Appenzell I.
25.6 Nidwalden
25.4 Uri 32.2
Grisons
33.5St. Gallen
31.6 Glarus
27.5 Schwyz
22.4 Zug
40.8Ticino
38.1Neuchâtel
36.0Fribourg
Clarity on Swiss Taxes
25
34.05 | 34.38Aargau
32.00Poland
- 0.48
31.17 | 31.16Lucerne
30.48 | 30.74
24.86
28.21 | 27.53
25.35
36.50 | 25.55
24.30
Appenzell A.
Appenzell I.
Obwalden
Nidwalden
Uri
Schwyz
31.56Glarus
22.86 | 22.38
35.00
35.00
34.18 | 33.97
33.52
32.48
32.29 | 31.89
32.18
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). Lithuania recently increased its tax rates to – a still competitive – 20%. Most of the Swiss cantons compare to the European average when it comes to top income tax rates. Tax rates in Europe are generally stable, with the significant decrease in Nidwalden a striking exception.
31.40
22.00
20.00
20.00
18.00
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. Hungary and Ukraine: income tax rate for 2018. 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
Grisons
Schaffhausen
Thurgau
Solothurn
Turkey
St. Gallen
Guernsey
Romania
Hungary
Ukraine
Estonia
Jersey
Czech Republic
Zug
Latvia
10.00Bulgaria
- 10.95
- 0.68
+ 0.26
- 0.40
35.00Malta
- 0.21
+ 0.33
2019
+/- compared with previous year
Figures in percent
26
40.72 | 41.77
48.00
46.60 | 38.20
46.24Iceland
Norway
Portugal
48.00Ireland
53.75
51.95 | 51.75
50.00
50.00
45.78
57.34 | 57.19
55.00
45.00
45.00
45.00
44.75
43.00
42.17
41.50
41.27
40.46 | 40.15
39.76
39.33 | 38.09
37.43 | 37.36
36.50
2019
+/- compared with previous year
Figures in percent
45.00
55.85 | 55.89
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.
+ 0.04
Luxemburg
Belgium
Slovenia
The Netherlands
Finland
Bern
Valais
Basel-Stadt
Neuchâtel
Zurich
Jura
Vaud
Ticino
Basel-Landschaft
Italy
Geneva
Germany
UK
Spain
Austria
Denmark
Sweden
Greece
- 8.40
- 0.15
- 0.20
Individual income tax rates are especially high in western Europe and Scandinavia. The Netherlands and Sweden once again reduced their rates slightly, while Denmark implemented a small increase. On average, tax rates across Europe have been stagnating in recent years, however.
36.02Fribourg
- 0.07
- 1.24
- 0.31
+ 1.05
Clarity on Swiss Taxes
27
20.00 30.00Jordan
45.00 45.00Australia
28.00 28.00
15.00 15.00
Non-european comparison (selected countries)The well-known offshore domiciles as well as several states in the Middle East remain committed to their zero income tax policies. Countries like South Africa, Australia, China and Japan have very high tax rates by global standards. Only in Jordan was there a significant hike in income tax rates (from 20% to 30%).
0.00
13.00 13.00
27.50 27.50
30.00 30.00 33.00 33.00 33.96 33.89 35.88 35.88 37.00 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. New Zealand and Bermuda: income tax rates for 2018. 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
2018
2019
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
Brazil
Indonesia
New Zealand
Swiss average
India
USA
South Africa
China
Japan
Singapore
28
25.00+ 5.00Jordan 30.00
45.00
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
- 8.00
Croatia
16.00 15.00-1.00Hong Kong
24.00 10.00- 14.00Bulgaria
40.00 45.00+ 5.00
40.00
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
- 0.96 34.85 33.89
Trend: countries 2007 – 2019Following the introduction of flat rate taxes, the income tax rates for the highest earners have fallen massively in central Europe over the past 12 years. Rising top income tax rates can be observed in northern Europe, Luxembourg and the Mediterranean in particular.
36.00 15.00
27.00 20.00
32.00 22.00
40.00 32.00
59.00 55.89
28.00 28.00
35.70 46.24
- 21.00
- 10.00
- 9.00
- 7.00
- 3.11
0.00
+ 10.54
Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Hungary: income tax rates for 2018. 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
2019
Figures in percent
Greece
UK
Isle of Man
Germany
USA
Ireland
Swiss average
Hungary
Lithuania
Czech Republic
Poland
Denmark
Malaysia
Iceland
Clarity on Swiss Taxes
29
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Clarity on Performance of Swiss Private Banks
0.430
0.384
0.103
0.499
0.274
0.199
0.693
0.184
0.294
0.793
0.193
0.558
0.430
0.384
0.103
0.499
0.274
0.199
0.693
0.184
0.294
0.793
0.193
0.558
RecoveryPerformanceBooming equities AuM up Cost control Strategy
0.4990.274
0.1990.693
0.1840.294
0.7930.193
0.558
0.4300.3840.103
0.4990.274
0.1990.6930.184
0.2940.7930.193
0.558
Jan0
50
100
Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dez
Clarity onPerformance of Swiss Private BanksRecovery of a divided industry
August 2018
17Industry performance Bull markets drove significant increases in Assets under Management and profits, but Net New Money continues to disappoint.
32Median bank insights While the industry is recovering amid positive markets, the weaker half of banks still struggled to improve RoE and Cost-income ratio.
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Please contact:
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Clarity on Swiss Taxes
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