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PwC’s international tax comparison

Get an overview of the tax landscape in and across the world with PwC

www.pwc.ch/international-tax-comparison PwC’s international tax comparison 2 Contents

Comparison of taxes for corporations and individuals 4 Comparing taxes: legal entities 5 2019 corporate tax rates in Switzerland 6 2019 corporate tax rates in the EU and Switzerland 7 2019 corporate tax rates in OECD and G20 countries 8 Comparing taxes: natural persons 9 2019 tax burden for natural persons (100’000 CHF net income) 10 2019 tax burden for natural persons (250’000 CHF net income) 12 2019 tax burden for natural persons (marginal tax rate) 14 Your contacts 16

3 PwC’s international tax comparison Comparison of taxes for corporations and individuals

PwC’s tax comparison tool is a quick and easy way to get When it comes to corporate entities, we also offer a an idea of tax rates for corporations and individuals. worldwide comparison. Whether you want to compare tax rates in Canton with those in Chile or see how Tax rates for natural persons vary depending on net Hong Kong compares with , the international income. You can conduct comparisons on three levels, tax comparison tool allows you to examine all the with a taxable net income of 100’000 CHF, a net income permutations. of 250’000 CHF, and the marginal tax rate. And you can do all that for the different cantons. The map of Switzerland featured in this document shows tax rates for the of each canton. You’ll also find For each canton you’ll not only see the figure for the this information and a lot more on our interactive map cantonal capital, but also those for the municipalities with of Switzerland. Put together your own comparisons at: the lowest and highest rates in the canton. www.pwc.ch/international-tax-comparison

Feel free to contact us if you have any questions.

Armin Marti Stefan Schmid Kornel Wick Partner Partner Director Leader Tax Policy Tax & Legal Services Tax & Legal Services

PwC’s international tax comparison 4 Comparing taxes: legal entities

The graphic below shows very clearly that cantons in Western Switzerland (and ) are among the more expensive in the country, with Central and in the lower-tax half.

15.72 22.18 -Stadt 16.43 20.7 Thurgau Basel-Landschaft 13.04 21.15 Ausserrhoden 20.53 18.61 Zurich 21.38 14.16 17.40 14.51 St Gall 12.32 15.19 15.61 Neuchatel 15.68 12.66 21.64 12.74 Berne 14.92 19.86 Uri 16.13 21.37

20.67 24.16 21.47

5 PwC’s international tax comparison 2019 corporate tax rates in Switzerland

Within the cantons themselves, corporate tax rates vary from 18.67% in the municipality of Däniken to 22.68% in considerably depending on where the entity is located or Matzendorf. There are various cantons with uniform rates, moving to. For example, rates in Canton Solothurn range including Neuchatel, St. Gall and Basel-Stadt.

2019 corporate tax rates in Switzerland

1. Lucerne Lucerne 12.32%

2. Nidwalden Uniform tax rate 12.66%

3. Obwalden Uniform tax rate 12.74%

4. Uniform tax rate 13.04%

5. Basel-Stadt Basel 13.04%

6. Vaud 14.00%

7. Appenzell Innerrhoden* Uniform tax rate 14.16%

8. Zug Zug 14.35%

9. Uri Altdorf 14.92%

10. Schwyz Schwyz 15.02%

11. Neuchatel Uniform tax rate 15.61%

12. Glarus Glarus 15.65%

13. Schaffhausen Schaffhausen 15.72%

14. Grisons Uniform tax rate 16.13%

15. Thurgau 16.43%

16. St Gall* Uniform tax rate 17.40%

17. Aargau Uniform tax rate 18.61%

18. Fribourg Fribourg 19.86%

19. Jura Delémont 20.4%

20. Ticino 22.55%

21. Basel-Landschaft 20.70%

22. Zurich Zurich 21.15%

23. Solothurn Solothurn 21.38%

24. Berne Berne 21.63%

25. Valais Uniform tax rate 21.74%

26. Geneva* Geneva 24.16%

0% 5% 10% 15% 20% 25%

2019 tax burden in cantonal capital Highest and lowest 2019 tax burdens * Same rates as 2018

PwC’s international tax comparison 6 2019 corporate tax rates in the EU and Switzerland

The Swiss cantons with the lowest rates in Switzerland This chart compares corporate tax rates in the compare well with the lowest tax rates in the EU countries. municipalities of Lucerne and Geneva with tax With a tax burden twice as high, the most expensive rates in all EU countries. cantons rank in the lower mid-range internationally.

2019 corporate tax rates in the EU and Switzerland

1. Hungary 9.00% 2. Bulgaria 10.00% 3. Switzerland (Lucerne) 12.32% 4. Ireland 12.50% 5. 12.50% 6. Lithuania 15.00% 7. Romania 16.00% 8. 18.00% 9. 19.00% 10. Slovenia 19.00% 11. Czech 19.00% 12. 19.00% 13. Estonia 20.00% 14. Finland 20.00% 15. 21.00% 16. Slovakia 21.00% 17. Sweden 21.40% 18. Denmark 22.00% 19. 24.00% 20. Switzerland (Geneva) 24.16% 21. Latvia 25.00% 22. 25.00% 23. 25.00% 24. 25.00% 25. Luxembourg 26.01% 26. Greece 28.00% 27. Belgium 29.58% 28. Germany 30.20% 29. 31.00% 30. Malta 35.00% *

0% 5% 10% 15% 20% 25% 30% 35% 40%

*Note: special tax refund rules apply

2019 corporate tax rate

7 PwC’s international tax comparison 2019 corporate tax rates in OECD and G20 countries

The Swiss cantons with the lowest rates in Switzerland The tax reform in the US is already having an impact, with compare well with the lowest tax rates in the OECD/ tax rates reduced to between 21.00% and 28.00%. This is G20 nations. With a tax burden twice as high, the most making the US more attractive in a comparison of OECD expensive cantons rank in the mid-range internationally. and G20 countries.

2019 corporate tax rates: OECD and G20 countries

1. Hungary 9.00% 2. Switzerland (Lucerne) 12.32% 3. Ireland 12.50% 4. Canada 15.00% 5. Germany 15.83% 6. Slovenia 19.00% 7. United Kingdom 19.00% 8. Czech Republic 19.00% 9. Poland 19.00% 10. 20.00% 11. Finland 20.00% 12. 20.00% 13. 20.00% 14. Latvia 20.00% 15. Estonia 20.00% 16. Slovakia 21.00% 17. Portugal 21.00% 18. of America 21.00% - 28.00% 19. Denmark 22.00% 20. South Korea 22.00% 21. Sweden 22.00% 22. 23.00% 23. Norway 23.00% 24. Italy 24.00% 25. Switzerland (Geneva) 24.16% 26. Netherlands 25.00% 27. China 25.00% 28. Indonesia 25.00% 29. Spain 25.00% 30. Chile 25.00% 31. Austria 25.00% 32. 25.00% - 43.00% 33. Luxembourg 26.00% 34. South 28.00% 35. New Zealand 28.00% 36. Greece 29.00% 37. Argentina 30.00% 38. Australia 30.00% 39. Mexico 30.00% 40. Japan 30.62 - 34.60% 41. France 33.33% 42. Belgium 34.00% 43. Brazil 34.00%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

PwC’s international tax comparison 8 Comparing taxes: natural persons

Income tax rates in Switzerland vary considerably from Find out how your canton of residence compares with canton to canton and from municipality to municipality. others. At www.pwc.ch/international-tax-comparison For example, Zug has the lowest rate of any cantonal you can use our interactive map of Switzerland to put capital for a taxable income of 100’000 CHF (10.50%), together detailed comparisons. and Neuchatel the highest (24.10%). Maximum marginal tax rates for high incomes range from 22.40% in Zug all On the next few pages we present an overview of the the way up to 45.00% for Geneva. cantons.

9 PwC’s international tax comparison 2019 tax burden for natural persons (100’000 CHF net income)

This overview shows tax rates for each cantonal capital. cantonal capital for a net income of 100’000 CHF is the The figures are for net income of 100’000 CHF. In this municipality of Neuchatel, with a tax rate of almost double scenario Canton Zug (represented by its capital, Zug) that, 24.10%. has the lowest tax rate, 10.50%. The most expensive

18.60% Schaffhausen 20.40% Basel-Stadt 17.50% 21.90% Thurgau Basel-Landschaft 18.60% 16.00% Appenzell Ausserrhoden 21.80% 17.20% Zurich Jura 20.20% Aargau Solothurn 14.10% Appenzell Innerrhoden 20.90% 10.50% St Gall 17.10% Zug Lucerne 13.90% 24.10% Schwyz Neuchatel 16.50% 14.90% Glarus Nidwalden 21.10% 14.00% Berne Obwalden 14.40% 21.30% Uri Fribourg 17.80% Grisons 22.90% Vaud

19.10% 21.60% 20.00% Ticino Geneva Valais

PwC’s international tax comparison 10 The chart below shows the rates for the different for example, the highest tax rate would be 25.70% in the cantonal capitals. However, in some cases there are big municipality of Enges in Canton Neuchatel, compared differences within individual cantons. Under this scenario, with only 24.10% in the canton’s capital, Neuchatel.

2019 tax burden for natural persons (sorted according to rate for 100’000 CHF net income)

1. Zug Zug 10.50% 18.50% 22.40% 2. Schwyz Schwyz 13.90% 21.70% 27.50% 3. Obwalden 14.00% 20.20% 24.30%

4. Appenzell Innerrhoden District: Appenzell / Municipality: Appenzell 14.10% 21.00% 24.70% 5. Uri Altdorf 14.40% 21.00% 25.30% 6. Nidwalden 14.90% 21.80% 25.60% 7. Zurich Zurich 16.00% 27.80% 40.00% 8. Glarus Glarus 16.50% 25.50% 31.60% 9. Lucerne Lucerne 17.10% 25.20% 31.20% 10. Aargau 17.20% 26.70% 34.50% 11. Thurgau Frauenfeld 17.50% 26.30% 32.50% 12. Grisons 17.80% 27.10% 32.20% 13. Schaffhausen Schaffhausen 18.60% 28.00% 31.60% 14. Appenzell Ausserrhoden 18.60% 27.20% 30.70% 15. Ticino Bellinzona 19.10% 30.20% 40.60% 16. Valais Sion 20.00% 31.80% 36.50% 17. Solothurn Solothurn 20.20% 29.80% 34.00% 18. Basel-Stadt Basel 20.40% 28.90% 37.50% 19. St Gall St Gall 20.90% 30.00% 33.50% 20. Berne Berne 21.10% 31.80% 41.40% 21. Fribourg Fribourg 21.30% 32.20% 36.00% 22. Geneva Geneva 21.60% 33.00% 45.00% 23. Jura Delémont 21.80% 32.60% 40.00% 24. Basel-Landschaft Liestal 21.90% 33.40% 42.20% 26. Vaud Lausanne 22.90% 35.10% 41.50% 27. Neuchatel Neuchatel 24.10% 34.20% 38.10%

0% 10% 20% 30% 40% 50%

100’000 CHF net income 250’000 CHF net income marginal tax rate

11 PwC’s international tax comparison 2019 tax burden for natural persons (250’000 CHF net income)

This overview shows tax rates for each cantonal capital. tax rate of 18.50%. The municipality of Lausanne, with a The figures are for a net income of 250’000 CHF. Zug rate of 35.10%, is at the foot of the rankings. also leads the rankings in this scenario with an attractive

28.00% Schaffhausen 28.90% Basel-Stadt 26.30% 33.40% Thurgau Basel-Landschaft 27.20% 27.80% Appenzell Ausserrhoden 32.60% 26.70% Zurich Jura 29.80% Aargau Solothurn 21.00% Appenzell Innerrhoden 30.00% 18.50% St Gall 25.20% Zug Lucerne 21.70% 34.20% Schwyz Neuchatel 25.50% 21.80% Glarus Nidwalden 31.80% 20.20% Berne Obwalden 21.00% 32.20% Uri Fribourg 27.10% Grisons 35.10% Vaud

30.20% 33.00% 31.80% Ticino Geneva Valais

PwC’s international tax comparison 12 The chart below shows the tax rate for the different You can do further comparisons online at cantonal capitals. Rates per communes may vary a bit www.pwc.ch/international-tax-comparison. due to different comunal multipliers, except for Glarus which is the only canton with a uniform tax rate across all municipalities.

2019 tax burden for natural persons (sorted according to rate for 250’000 CHF net income)

1. Zug Zug 10.50% 18.50% 22.40% 2. Obwalden Sarnen 14.00% 20.20% 24.30% 3. Uri Altdorf 14.40% 21.00% 25.30%

4. Appenzell Innerrhoden District: Appenzell / Municipality: Appenzell 14.10% 21.00% 24.70% 5. Schwyz Schwyz 13.90% 21.70% 27.50% 6. Nidwalden Stans 14.90% 21.80% 25.60% 7. Lucerne Lucerne 17.10% 25.20% 31.20% 8. Glarus Glarus 16.50% 25.50% 31.60% 9. Thurgau Frauenfeld 17.50% 26.30% 32.50% 10. Aargau Aarau 17.20% 26.70% 34.50% 11. Grisons Chur 17.80% 27.10% 32.20% 12. Appenzell Ausserrhoden Herisau 18.60% 27.20% 30.70% 13. Zurich Zurich 16.00% 27.80% 40.00% 14. Schaffhausen Schaffhausen 18.60% 28.00% 31.60% 15. Basel-Stadt Basel 20.40% 28.90% 37.50% 16. Solothurn Solothurn 20.20% 29.80% 34.00% 17. St Gall St Gall 20.90% 30.00% 33.50% 18. Ticino Bellinzona 19.10% 30.20% 40.60% 19. Valais Sion 20.00% 31.80% 36.50% 20. Berne Berne 21.10% 31.80% 41.40% 21. Fribourg Fribourg 21.30% 32.20% 36.00% 22. Jura Delémont 21.80% 32.60% 40.00% 23. Geneva Geneva 21.60% 33.00% 45.00% 24. Basel-Landschaft Liestal 21.90% 33.40% 42.20% 25. Neuchatel Neuchatel 24.10% 34.20% 38.10% 26. Vaud Lausanne 22.90% 35.10% 41.50%

0% 10% 20% 30% 40% 50%

100’000 CHF net income 250’000 CHF net income marginal tax rate

13 PwC’s international tax comparison 2019 tax burden for natural persons (marginal tax rate)

This overview shows tax rates for each cantonal capital. of the rankings with a rate of 22.40%. At the foot of the The figures refer to the marginal tax rate. Here the rankings is the municipality of Geneva with 45.00%, municipality of Zug takes over from Schwyz at the head almost double the rate of Zug.

31.60% Schaffhausen 37.50% Basel-Stadt 32.50% 42.20% Thurgau Basel-Landschaft 30.70% 40.00% Appenzell Ausserrhoden 40.00% 34.50% Zurich Jura 34.00% Aargau Solothurn 24.70% Appenzell Innerrhoden 33.50% 22.40% St Gall 31.20% Zug Lucerne 27.50% 38.10% Schwyz Neuchatel 31.60% 25.60% Glarus Nidwalden 41.40% 24.30% Berne Obwalden 25.30% 36.00% Uri Fribourg 32.20% Grisons 41.50% Vaud

40.60% 45.00% 36.50% Ticino Geneva Valais

PwC’s international tax comparison 14 So depending on income it makes sense to compare municipality of Wollerau in Canton Schwyz (which with different cantons and municipalities. Even though 22.40% even boasts a slightly lower rate than Zug). the municipality of Zug has the lowest tax rate of Do your own personal comparison online at any cantonal capital, a similar tax rate is found in the www.pwc.ch/international-tax-comparison.

2019 tax burden for natural persons (sorted according to marginal tax rate)

1. Zug Zug 10.50% 18.50% 22.40% 2. Obwalden Sarnen 14.00% 20.20% 24.30%

3. Appenzell Innerrhoden District: Appenzell / Municipality: Appenzell 14.10% 21.00% 24.70% 4. Uri Altdorf 14.40% 21.00% 25.30% 5. Nidwalden Stans 14.90% 21.80% 25.60% 6. Schwyz Schwyz 13.90% 21.70% 27.50% 7. Appenzell Ausserrhoden Herisau 18.60% 27.20% 30.70% 8. Lucerne Lucerne 17.10% 25.20% 31.20% 9. Glarus Glarus 16.50% 25.50% 31.60% 10. Schaffhausen Schaffhausen 18.60% 28.00% 31.60% 11. Grisons Chur 17.80% 27.10% 32.20% 12. Thurgau Frauenfeld 17.50% 26.30% 32.50% 13. St Gall St Gall 20.90% 30.00% 33.50% 14. Solothurn Solothurn 20.20% 29.80% 34.00% 15. Aargau Aarau 17.20% 26.70% 34.50% 16. Fribourg Fribourg 21.30% 32.20% 36.00% 17. Valais Sion 20.00% 31.80% 36.50% 18. Basel-Stadt Basel 20.40% 28.90% 37.50% 19. Neuchatel Neuchatel 24.10% 34.20% 38.10% 20. Jura Delémont 21.80% 32.60% 40.00% 21. Zurich Zurich 16.00% 27.80% 40.00% 22. Ticino Bellinzona 19.10% 30.20% 40.60% 23. Berne Berne 21.10% 31.80% 41.40% 24. Vaud Lausanne 22.90% 35.10% 41.50% 25. Basel-Landschaft Liestal 21.90% 33.40% 42.20% 26. Geneva Geneva 21.60% 33.00% 45.00%

0% 10% 20% 30% 40% 50%

100’000 CHF net income 250’000 CHF net income marginal tax rate

15 PwC’s international tax comparison Your contacts

Tax services for corporate entities

Armin Marti Partner and Leader Tax Policy +41 58 792 43 43 [email protected]

Stefan Schmid Partner Tax & Legal Services +41 58 792 44 82 [email protected]

Tax services for private clients

Kornel Wick Director Tax & Legal Services +41 58 792 42 48 [email protected]

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