Tax PERSPECTIVES NIDWALDEN Exclusive
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Tax PersPecTives NidwaldeN exclusive 101130AM_Broschüre_en.indd 1 07.01.11 15:10 Contents Tax perspectives 4 NidwaldeN – central iN all matters Preface 5 Welcome To NidwaldeN Your tax advantages at a glance 7 NaTural PersoNs legal entiTies NidwaldeN exclusive Key points 8 NaTural PersoNs Key points 14 Legal entiTies Key points 18 NidwaldeN exclusive Case study 22 NidwaldeN – attracTive NeTworks Support in all matters 24 At your service Edition 2011 101130AM_Broschüre_en.indd 2 07.01.11 15:10 Nidwalden NidwaldeN – quality of life at its best The Canton of Nidwalden 1 Hergiswil is home to 42,000 people.* 2 Stansstad Situated between Lake Lucerne and the mountains, 3 Ennetbürgen Nidwalden covers an area 4 Ennetmoos of 276 square kilometres. The cantonal capital is Stans. 3 1 2 5 Stans The local parliament 6 Buochs has 60 seats, while the 5 6 executive government 7 7 Beckenried consists of seven members. 4 8 8 Emmetten The language spoken in Nidwalden is German. 9 Dallenwil More at www.nw.ch 9 Oberdorf *Status in 2009 Wolfenschiessen s witzerlaNd – iN the heart of europe Switzerland has approximately 7.8 million inhabitants* living in an area of 41,200 square kilometres. The Swiss Confederation consists of 26 cantons, and the capital is Berne. The Swiss parliament is made up of two chambers: the National Council consists of 200 members who represent the people, and the Council of States consists of 46 parliamentarians who represent the cantons. The government, the Federal Council, has seven members. The official languages are German (63.7%), French (20.4%), Italian (6.5%) and Rhaeto-Romanic (0.5%). More at www.admin.ch *Status in 2009 3 101130AM_Broschüre_en.indd 3 07.01.11 15:10 Tax perspectives NidwaldeN – ceNTral iN all maTTers 1 Hergiswil easy to reach. From Nidwalden, the econom- ing potential made possible by the positive com- 2 Stansstad ic metropolis Zurich and Kloten Airport can be bination of its internal components: politicians, 3 Ennetbürgen reached in just under an hour. Most of Europe’s government, business and society all see them- 4 Ennetmoos major centres are also within easy reach. Nid- selves as parts of a successful whole. These fac- 5 Stans walden is easily accessible and offers an excel- tors determine the economic and fiscal param- 6 Buochs lent private and public transport infrastructure. Its eters that underpin the canton’s first-rate national 7 Beckenried geographic location is a first-rate locational factor. and international ranking. 8 Emmetten 9 Dallenwil innovative, tax-efficient and business-friendly. Customer-centric. Taxpayers are customers. They Oberdorf Leading international and national enterprises are entitled to services that are understood as Wolfenschiessen give testimony to the innovative power of this for- such. The canton’s size makes it possible to take ward-looking canton. Research and development the shortest routes. The administration is lean and projects flourish in a tax-efficient environment flexible, and contact with decision-makers can be where the people are open-minded, business- established quickly. Communication routes are friendly and well educated. All of this gives the direct, and processes are open and transparent. canton its edge as a place to live as well as a All matters are handled quickly and with the min- company domicile. imum of red tape. Sensitivities are identified pro- Nidwalden is one of the leading cantons in actively, and special needs are taken into account Switzerland, thanks to its special constellation whenever possible. as a well-managed “enterprise” with a high earn- 4 101130AM_Broschüre_en.indd 4 07.01.11 15:10 Preface w elcome To NidwaldeN Nidwalden is one of the cantons with the lowest specialists. Productivity is also high in an inter- tax rates in Switzerland. In an international com- national comparison. parison Nidwalden also ranks among the best and The healthy state of the public finances is takes the lead in income and wealth tax for nat- one of the key success factors. This derives from ural persons as well as in income tax and tax on profitable accounts, which are the result of a stra- capital for legal entities. tegically focused fiscal policy. This situation is not Situated in the heart of Switzerland and easily expected to change in future – thanks to its stable accessible from any direction, the canton is an political system, Nidwalden should remain one of exclusive location for private individuals as well as the most attractive places to live and do business for companies. in Switzerland. Nidwalden offers a very special combination This “Tax Perspectives” brochure explains the of high quality of life and excellent economic con- fiscal advantages and thus the success factors ditions. Its infrastructure is highly developed, the that strengthen this forward-looking canton. landscape is intact, and security is excellent. A forward-looking educational system struc- Welcome to the Canton of Nidwalden! tured with an eye to success means that com- panies can recruit highly qualified and enterprising State Councillor Hugo Kayser, Finance Director 5 101130AM_Broschüre_en.indd 5 07.01.11 15:10 NidwaldeN – a CaNtoN with prospeCts (capital Stans) 101130AM_Broschüre_en.indd 6 07.01.11 15:10 Your tax advantages at a glance Na Tural PersoNs In Nidwalden, natural persons benefit from in- childcare, regardless of whether the children are come and wealth tax rates that are among the looked after by a parent or by a third party. Other lowest of their kind in both a national and an inter- advantages include the dilution of double taxation national comparison. Two issues are attractive for of income from qualifying equity interests as well as families: partial splitting and a large deduction for the reduced taxation of other investment income. legal eNTiTies Legal entities benefit from extremely low income culation is beneficial, and generous and compre- and capital tax rates. These tax advantages can hensive deductions, especially for research and de- also hold their own when compared to national and velopment, are as much a part of the fiscal system international competitors. The base for the tax cal- as substantial tax relief for global licence income. NidwaldeN exclusive Natural persons. Nidwalden applies one of is the low capital tax rate of 0.01 percent, which the lowest wealth tax rates and is the only can- is almost like dispensing with this tax altogether, ton in Switzerland to grant general tax relief of and secondly, research and development activ- 20 percent on other investment income (interest ities enjoy tax advantages as no ceiling applies income). Those who take care of their own chil- to provisions. Thirdly, the tax relief granted for dren can deduct CHF 3,000, plus an additional licence income promotes innovation by way of amount of CH 7,900 for external childcare costs the newly introduced licence box model: the in- per year. Married couples, registered partners come tax rate for net licence income from the use and descendants do not pay inheritance or gift of intellectual property rights is only 20 percent tax on financial bequests and gifts, which also of the regular income tax rate of 6 percent; this brings advantages when structuring company means that global licence income is only taxed at succession. a flat rate of 1.2 percent. It should also be pointed out that at a flat rate of just 1 percent, founda- legal entities. The Nidwalden tax model turns tions benefit from the lowest income tax rate in the canton into a first-rate location. Firstly, there Switzerland. 7 101130AM_Broschüre_en.indd 7 07.01.11 15:10 Key points Na Tural PersoNs The tax situation in Nidwalden is advantageous Direct federal tax is levied in addition to for people in all income classes and all net worth cantonal and municipal taxes. This tax is levied at positions. Thanks to the new income tax rate, tax- a uniform rate that applies to the whole of Switzer- able incomes from around CHF 155,000 upwards land. The direct federal tax does not include any are no longer subject to tax rate progression and wealth tax. are taxed at a low maximum rate of 2.75 percent (see graph on page 10). Automatic cost-of-living adjustment. Cold progres- sion is compensated automatically if the Swiss tax rate. The basic tax rate is multiplied by consumer price index increases by 5 percent; the combined total tax rate for the canton and otherwise an adjustment is made at least every the municipalities to calculate the income and three years. wealth tax. For a taxable income of around CHF 155,000 and more, the maximum basic tax At a combined total tax rate of 4.25 units (can- rate is 2.75 percent, while the basic wealth tax ton and municipality) and taking account of the rate is 0.025 percent. Spouses have a tax-free al- direct federal tax (without wealth tax), the over- lowance of CHF 70,000, and the tax-free allow- all income and wealth tax burden for a married ance for singles is CHF 35,000. An additional tax- couple belonging to no religious denomination free allowance of CHF 15,000 per child can be in the municipality of Hergiswil for the 2011 tax deducted. period is demonstrated in the following graphs. iNCome tax Income in CHF Canton/municipality | Confederation Total in CHF in % 100,000 8,561 1,992 10,553 10.55% 155,800 15,741 6,912 22,654 14.54% 200,000 21,565 12,659 34,224 17.11% 300,000 35,063 25,659 60,722 20.24% 500,000 58,438 51,659 110,097 22.02% 1,000,000 116,875 115,000 231,875 23.19% wealth tax Assets in CHF Canton/municipality | Confederation Total in CHF in % 100,000 106 none 106 0.11% 500,000 531 none 531 0.11% 1,000,000 1,063 none 1,063 0.11% 5,000,000 5,313 none 5,313 0.11% 8 101130AM_Broschüre_en.indd 8 07.01.11 15:10 q uality of life as a loCatioNal faCtor (Aumühle, Ennetbürgen) 101130AM_Broschüre_en.indd 9 07.01.11 15:10 Key points – Natural persons partial splitting.