PwC’s international tax comparison · 5 PwC’s international tax comparison Comparing taxes:...

PwC’s international tax comparison

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

www.pwc.ch/international-tax-comparison

PwC’s international tax comparison 2

3 PwC’s international tax comparison

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


Comparison of taxes for corporations and individuals

PwC’s tax comparison tool is a quick and easy way to get an idea of tax rates for corporations and individuals.

Tax rates for natural persons vary depending on net income. You can conduct comparisons on three levels, with a taxable net income of 100’000 CHF, a net income of 250’000 CHF, and the marginal tax rate. And you can do all that for the different cantons.

For each canton you’ll not only see the figure for the cantonal capital, but also those for the municipalities with the lowest and highest rates in the canton.

When it comes to corporate entities, we also offer a worldwide comparison. Whether you want to compare tax rates in Canton Thurgau with those in Chile or see how Hong Kong compares with Germany, the international tax comparison tool allows you to examine all the permutations.

The map of Switzerland featured in this document shows tax rates for the capital of each canton. You’ll also find this information and a lot more on our interactive map of Switzerland. Put together your own comparisons at: www.pwc.ch/international-tax-comparison

Feel free to contact us if you have any questions.

Armin Marti Partner Leader Tax Policy

Stefan Schmid Partner Tax & Legal Services

Kornel Wick Director Tax & Legal Services



Comparing taxes: legal entities

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

15.72Schaffhausen

22.18Basel-Stadt

20.53Jura

20.7Basel-Landschaft

18.61Aargau

16.43Thurgau

21.38Solothurn

15.61Neuchatel

19.86Fribourg

21.37Vaud

24.16Geneva

21.47Valais

21.64Berne

12.32Lucerne

12.74Obwalden

12.66Nidwalden

14.92Uri

15.68Glarus

15.19Schwyz

14.51Zug

21.15Zurich

17.40St Gall

16.13Grisons

14.16Appenzell Innerrhoden

13.04Appenzell Ausserrhoden

20.67Ticino



2019 corporate tax rates in SwitzerlandWithin the cantons themselves, corporate tax rates vary considerably depending on where the entity is located or moving to. For example, rates in Canton Solothurn range

from 18.67% in the municipality of Däniken to 22.68% in Matzendorf. There are various cantons with uniform rates, including Neuchatel, St. Gall and Basel-Stadt.

2019 corporate tax rates in Switzerland

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

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

1. Lucerne

2. Nidwalden

3. Obwalden

4. Appenzell Ausserrhoden

5. Basel-Stadt

6. Vaud

7. Appenzell Innerrhoden*

8. Zug

9. Uri

10. Schwyz

11. Neuchatel

12. Glarus

13. Schaffhausen

14. Grisons

15. Thurgau

16. St Gall*

17. Aargau

18. Fribourg

19. Jura

20. Ticino

21. Basel-Landschaft

22. Zurich

23. Solothurn

24. Berne

25. Valais

26. Geneva*

14.92%

15.65%

16.13%

14.16%

12.66%

12.74%

13.04%

13.04%

Lucerne

Uniform tax rate

Uniform tax rate

Uniform tax rate

Basel

Lausanne

Uniform tax rate

Zug

Altdorf

Schwyz

Uniform tax rate

Glarus

Schaffhausen

Uniform tax rate

Frauenfeld

Uniform tax rate

Uniform tax rate

Fribourg

Delémont

Bellinzona

Liestal

Zurich

Solothurn

Berne

Uniform tax rate

Geneva

12.32%

14.00%

14.35%

15.61%

15.72%

18.61%

19.86%

20.4%

22.55%

21.38%

21.63%

24.16%

17.40%

20.70%

21.15%

15.02%

16.43%

*

21.74%


2019 corporate tax rates in the EU and SwitzerlandThe Swiss cantons with the lowest rates in Switzerland compare well with the lowest tax rates in the EU countries. With a tax burden twice as high, the most expensive cantons rank in the lower mid-range internationally.

This chart compares corporate tax rates in the municipalities of Lucerne and Geneva with tax rates in all EU countries.

2019 corporate tax rates in the EU and Switzerland

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

*Note: special tax refund rules apply

2019 corporate tax rate

9.00%

10.00%

12.32%

12.50%

12.50%

15.00%

16.00%

18.00%

19.00%

19.00%

19.00%

19.00%

20.00%

20.00%

21.00%

21.00%

21.40%

22.00%

24.00%

24.16%

25.00%

25.00%

25.00%

26.01%

28.00%

29.58%

30.20%

31.00%

35.00% *

25.00%

1. Hungary

2. Bulgaria

3. Switzerland (Lucerne)

4. Ireland

5. Cyprus

6. Lithuania

7. Romania

8. Croatia

9. Poland

10. Slovenia

11. Czech Republic

12. United Kingdom

13. Estonia

14. Finland

15. Portugal

16. Slovakia

17. Sweden

18. Denmark

19. Italy

20. Switzerland (Geneva)

21. Latvia

22. Netherlands

23. Austria

24. Spain

25. Luxembourg

26. Greece

27. Belgium

28. Germany

29. France

30. Malta


2019 corporate tax rates in OECD and G20 countriesThe Swiss cantons with the lowest rates in Switzerland compare well with the lowest tax rates in the OECD/G20 nations. With a tax burden twice as high, the most expensive cantons rank in the mid-range internationally.

The tax reform in the US is already having an impact, with tax rates reduced to between 21.00% and 28.00%. This is making the US more attractive in a comparison of OECD and G20 countries.

2019 corporate tax rates: OECD and G20 countries

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

9.00%

12.32%

12.50%

15.00%

15.83%

19.00%

19.00%

19.00%

19.00%

20.00%

20.00%

20.00%

20.00%

20.00%

20.00%

21.00%

21.00%

22.00%

22.00%

23.00%

23.00%

24.00%

24.16%

25.00%

25.00%

25.00%

25.00%

22.00%

25.00%

26.00%

28.00%

29.00%

30.00%

30.00%

28.00%

1. Hungary

2. Switzerland (Lucerne)

3. Ireland

4. Canada

5. Germany

6. Slovenia

7. United Kingdom

8. Czech Republic

9. Poland

10. Turkey

11. Finland

12. Russia

13. Saudi Arabia

14. Latvia

15. Estonia

16. Slovakia

17. Portugal

18. United States of America

19. Denmark

20. South Korea

21. Sweden

22. Israel

23. Norway

24. Italy

25. Switzerland (Geneva)

26. Netherlands

27. China

28. Indonesia

29. Spain

30. Chile

31. Austria

32. India

33. Luxembourg

34. South Africa

35. New Zealand

36. Greece

37. Argentina

38. Australia

39. Mexico

40. Japan

41. France

42. Belgium

43. Brazil

33.33%

34.00%

34.00%

25.00%

30.00%

21.00% - 28.00%

25.00% - 43.00%

30.62 - 34.60%


Comparing taxes: natural personsIncome tax rates in Switzerland vary considerably from canton to canton and from municipality to municipality. For example, Zug has the lowest rate of any cantonal capital for a taxable income of 100’000 CHF (10.50%), and Neuchatel the highest (24.10%). Maximum marginal tax rates for high incomes range from 22.40% in Zug all the way up to 45.00% for Geneva.

Find out how your canton of residence compares with others. At www.pwc.ch/international-tax-comparison you can use our interactive map of Switzerland to put together detailed comparisons.

On the next few pages we present an overview of the cantons.



2019 tax burden for natural persons(100’000 CHF net income)

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

cantonal capital for a net income of 100’000 CHF is the municipality of Neuchatel, with a tax rate of almost double that, 24.10%.

18.60%Schaffhausen

20.40%Basel-Stadt

21.80%Jura

21.90%Basel-Landschaft

17.20%Aargau

17.50%Thurgau

20.20%Solothurn

24.10%Neuchatel

21.30%Fribourg

22.90%Vaud

21.60%Geneva

20.00%Valais

21.10%Berne

17.10%Lucerne

14.00%Obwalden

14.90%Nidwalden

14.40%Uri

16.50%Glarus

13.90%Schwyz

10.50%Zug

16.00%Zurich

20.90%St Gall

17.80%Grisons

14.10%Appenzell Innerrhoden

18.60%Appenzell Ausserrhoden

19.10%Ticino



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

25.50% 31.60%

16.00% 27.80% 40.00%

16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.50% 26.30% 32.50%

17.80% 27.10% 32.20%

18.60% 28.00% 31.60%

18.60% 27.20% 30.70%

19.10% 30.20% 40.60%

20.00% 31.80% 36.50%

20.20% 29.80% 34.00%

20.40% 28.90% 37.50%

20.90% 30.00% 33.50%

21.10% 31.80% 41.40%

21.30% 32.20% 36.00%

21.60% 33.00% 45.00%

21.80% 32.60% 40.00%

21.90% 33.40% 42.20%

22.90% 35.10% 41.50%

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

18.50% 22.40%10.50%

21.70% 27.50%13.90%

20.20% 24.30%14.00%

21.00% 24.70%14.10%

21.00% 25.30%14.40%

21.80% 25.60%14.90%

1. Zug

2. Schwyz

3. Obwalden

4. Appenzell Innerrhoden

5. Uri

6. Nidwalden

7. Zurich

8. Glarus

9. Lucerne

10. Aargau

11. Thurgau

12. Grisons

13. Schaffhausen


15. Ticino

16. Valais

17. Solothurn

18. Basel-Stadt

19. St Gall

20. Berne

21. Fribourg

22. Geneva

23. Jura


26. Vaud

27. Neuchatel

Zug

Schwyz

Sarnen

District: Appenzell / Municipality: Appenzell

Altdorf

Stans

Zurich

Glarus

Lucerne

Aarau

Frauenfeld

Chur

Schaffhausen

Herisau

Bellinzona

Sion

Solothurn

Basel

St Gall

Berne

Fribourg

Geneva

Delémont

Liestal

Lausanne

Neuchatel

The chart below shows the rates for the different cantonal capitals. However, in some cases there are big differences within individual cantons. Under this scenario,

for example, the highest tax rate would be 25.70% in the municipality of Enges in Canton Neuchatel, compared with only 24.10% in the canton’s capital, Neuchatel.


2019 tax burden for natural persons(250’000 CHF net income)

This overview shows tax rates for each cantonal capital. The figures are for a net income of 250’000 CHF. Zug also leads the rankings in this scenario with an attractive

tax rate of 18.50%. The municipality of Lausanne, with a rate of 35.10%, is at the foot of the rankings.

28.00%Schaffhausen

28.90%Basel-Stadt

32.60%Jura


26.70%Aargau

26.30%Thurgau

29.80%Solothurn

34.20%Neuchatel

32.20%Fribourg

35.10%Vaud

33.00%Geneva

31.80%Valais

31.80%Berne

25.20%Lucerne

20.20%Obwalden

21.80%Nidwalden

21.00%Uri

25.50%Glarus

21.70%Schwyz

18.50%Zug

27.80%Zurich

30.00%St Gall

27.10%Grisons



30.20%Ticino



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

25.50% 31.60%

16.00% 27.80% 40.00%

16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.50% 26.30% 32.50%

17.80% 27.10% 32.20%

18.60% 28.00% 31.60%

18.60% 27.20% 30.70%

19.10% 30.20% 40.60%

20.00% 31.80% 36.50%

20.20% 29.80% 34.00%

20.40% 28.90% 37.50%

20.90% 30.00% 33.50%

21.10% 31.80% 41.40%

21.30% 32.20% 36.00%

21.60% 33.00% 45.00%

21.80% 32.60% 40.00%

21.90% 33.40% 42.20%

22.90% 35.10% 41.50%

24.10% 34.20% 38.10%

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


18.50% 22.40%10.50%

21.70% 27.50%13.90%

20.20% 24.30%14.00%

21.00% 24.70%14.10%

21.00% 25.30%14.40%

21.80% 25.60%14.90%

1. Zug

2. Obwalden

3. Uri


5. Schwyz

6. Nidwalden

7. Lucerne

8. Glarus

9. Thurgau

10. Aargau

11. Grisons


13. Zurich

14. Schaffhausen

15. Basel-Stadt

16. Solothurn

17. St Gall

18. Ticino

19. Valais

20. Berne

21. Fribourg

22. Jura

23. Geneva


25. Neuchatel

26. Vaud

Zug

Sarnen

Altdorf


Schwyz

Stans

Lucerne

Glarus

Frauenfeld

Aarau

Chur

Herisau

Zurich

Schaffhausen

Basel

Solothurn

St Gall

Bellinzona

Sion

Berne

Fribourg

Delémont

Geneva

Liestal

Neuchatel

Lausanne

The chart below shows the tax rate for the different cantonal capitals. Rates per communes may vary a bit due to different comunal multipliers, except for Glarus which is the only canton with a uniform tax rate across all municipalities.

You can do further comparisons online atwww.pwc.ch/international-tax-comparison.


2019 tax burden for natural persons(marginal tax rate)

This overview shows tax rates for each cantonal capital. The figures refer to the marginal tax rate. Here the municipality of Zug takes over from Schwyz at the head

of the rankings with a rate of 22.40%. At the foot of the rankings is the municipality of Geneva with 45.00%, almost double the rate of Zug.

31.60%Schaffhausen

37.50%Basel-Stadt

40.00%Jura


34.50%Aargau

32.50%Thurgau

34.00%Solothurn

38.10%Neuchatel

36.00%Fribourg

41.50%Vaud

45.00%Geneva

36.50%Valais

41.40%Berne

31.20%Lucerne

24.30%Obwalden

25.60%Nidwalden

25.30%Uri

31.60%Glarus

27.50%Schwyz

22.40%Zug

40.00%Zurich

33.50%St Gall

32.20%Grisons



40.60%Ticino



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

16.00% 27.80% 40.00%

25.50% 31.60%16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.50% 26.30% 32.50%

17.80% 27.10% 32.20%

18.60% 28.00% 31.60%

18.60% 27.20% 30.70%

19.10% 30.20% 40.60%

21.30% 32.20% 36.00%

20.00% 31.80% 36.50%

20.20% 29.80% 34.00%

20.40% 28.90% 37.50%

20.90% 30.00% 33.50%

21.10% 31.80% 41.40%

21.60% 33.00% 45.00%

21.80% 32.60% 40.00%

21.90% 33.40% 42.20%

22.90% 35.10% 41.50%

24.10% 34.20% 38.10%

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


18.50% 22.40%10.50%

21.70% 27.50%13.90%

20.20% 24.30%14.00%

21.00% 24.70%14.10%

21.00% 25.30%14.40%

21.80% 25.60%14.90%

1. Zug

2. Obwalden


4. Uri

5. Nidwalden

6. Schwyz


8. Lucerne

9. Glarus

10. Schaffhausen

11. Grisons

12. Thurgau

13. St Gall

14. Solothurn

15. Aargau

16. Fribourg

17. Valais

18. Basel-Stadt

19. Neuchatel

20. Jura

21. Zurich

22. Ticino

23. Berne

24. Vaud


26. Geneva

Zug

Sarnen


Altdorf

Stans

Schwyz

Herisau

Lucerne

Glarus

Schaffhausen

Chur

Frauenfeld

St Gall

Solothurn

Aarau

Fribourg

Sion

Basel

Neuchatel

Delémont

Zurich

Bellinzona

Berne

Lausanne

Liestal

Geneva

So depending on income it makes sense to compare different cantons and municipalities. Even though the municipality of Zug has the lowest tax rate of any cantonal capital, a similar tax rate is found in the

municipality of Wollerau in Canton Schwyz (which with 22.40% even boasts a slightly lower rate than Zug).Do your own personal comparison online at www.pwc.ch/international-tax-comparison.

© 2019 PwC. All rights reserved. ‘PwC’ refers to PricewaterhouseCoopers AG, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Your contacts

Tax services for corporate entities

Tax services for private clients

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

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

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

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