PwC’s international tax comparison 2020

PwC’s international tax comparison 2020

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 2020 2

3 PwC’s international tax comparison 2020

Contents

Comparison of taxes for corporations and individuals 4

Comparing taxes: legal entities 5

2020 corporate tax rates in Switzerland 6

2020 corporate tax rates in the EU and Switzerland 7

2020 corporate tax rates in OECD and G20 countries 8

Comparing taxes: natural persons 9

2020 tax burden for natural persons (100’000 CHF net income) 10

2020 tax burden for natural persons (250’000 CHF net income) 12

2020 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.

When it comes to corporate entities, we also offer a worldwide comparison. Whether you want to compare tax rates in the canton of 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

14.03%Schaffhausen

13.04%Basel-Stadt

17.02%Jura

17.97%Basel-Landschaft

18.61%Aargau

13.40%Thurgau

16.21%Solothurn

13.57%Neuchatel

14.12%Freiburg

14.00%Vaud

14.00%Geneva

20.13%Valais

21.63%Berne

12.32%Lucerne

12.74%Obwalden

12.66%Nidwalden

12.64%Uri

12.43%Glarus

14.13%Schwyz

11.91%Zug

21.15%Zurich

14.50%St Gall

14.77%Grisons

12.66%Appenzell Innerrhoden

13.04%Appenzell Ausserrhoden

19.16%Ticino


Low income tax rates High income tax rates

As a result of the Swiss tax reform, due to the introduction of new relief measures, from 2020 the effective corporate income tax rate can further be reduced for companies qualifying for one or more of the newly introduced relief measures, such as the deduction for R&D costs, the patent box deduction, the deduction on net equity (the latter in the canton of Zurich only) or if they qualify for temporary transition relief due to the abolishment of former tax regimes.

Compared to 2019, there have been some significant reductions in ordinary cantonal tax rates in many cantons. This is a result on Swiss corporate tax reform, which became effective as of 1 January 2020.

The graphic below shows very clearly that the cantons of Bern, Zurich and Valais have some of the highest tax rates in the country, while tax rates in central Switzerland are significantly lower.


2020 corporate tax rates in SwitzerlandWithin the cantons themselves, corporate tax rates vary considerably depending on where the entity is located or moving to. There are various cantons with a uniform tax rate for all municipalities, including Neuchâtel, St. Gallen

and Basel-Stadt. For the other cantons, the tax rate may vary due to municipality-dependent multipliers. The table shows the rate for the cantonal capital.

2020 corporate tax rates in Switzerland

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

2020 tax burden in cantonal capital

1. Zug

2. Lucerne

3. Glarus

4. Uri

5. Appenzell Innerrhoden

6. Nidwalden

7. Obwalden

8. Appenzell Ausserrhoden

9. Basel-Stadt

10. Thurgau

11. Neuchatel

12. Vaud

13. Geneva

14. Schaffhausen

15. Fribourg

16. Schwyz

17. St Gall

18. Grisons

19. Solothurn

20. Jura

21. Basel-Landschaft

22. Aargau

23. Ticino

24. Valais

25. Zurich

26. Berne

13.04%

14.00%

14.03%

12.74%

12.32%

12.43%

12.64%

12.66%

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

Uniform tax rate

11.91%

12.66%

13.04%

13.57%

14.00%

14.50%

14.77%

16.21%

17.02%

19.16%

20.13%

21.63%

14.13%

17.97%

18.61%

13.40%

14.12%

21.15%


2020 corporate tax rates in the EU and SwitzerlandThe Swiss cantons with the lowest rates in Switzerland compare well with the lowest tax rates in EU countries. With a tax burden twice as high, the most expensive cantons rank in the lower mid-range internationally.

The most favourable cantons are near the top of the rankings. The chart compares the corporate tax rates in Zug and Bern with the tax rates of all EU countries.

2020 corporate tax rates in the EU and Switzerland

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

*Note: special tax refund rules apply

2020 corporate tax rate

9.00%

10.00%

11.91%

12.50%

15.00%

16.00%

18.00%

19.00%

19.00%

19.00%

20.00%

20.00%

20.00%

21.00%

21.00%

21.40%

22.00%

24.00%

24.00%

21.63%

25.00%

25.00%

25.00%

24.94%

29.58%

33.33%

35.00%

1. Hungary

2. Bulgaria

3. Switzerland (Zug)

4. Cyprus

5. Lithuania

6. Romania

7. Croatia

8. Poland

9. Slovenia

10. Czech Republic

11. Estonia

12. Finland

13. Latvia

14. Portugal

15. Slowak Republic

16. Sweden

17. Switzerland (Berne)

18. Denmark

19. Italy

20. Greece

21. Luxembourg

22. Ireland

23. Netherlands

24. Austria

25. Spain

26. Belgium

27. France

28. Malta*

29. Germany

25.00%

36.00%


2020 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.

2020 corporate tax rates: OECD and G20 countries

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

9.00%

11.91%

19.00%

19.00%

19.00%

19.00%

20.00%

20.00%

20.00%

20.00%

20.00%

21.00%

21.00%

22.00%

22.00%

22.00%

21.40%

23.00%

24.00%

24.00%

24.94%

21.63%

25.00%

25.00%

25.00%

25.00%

28.00%

30.00%

30.00%

28.00%

29.58%

1. Hungary

2. Switzerland (Zug)

3. Slovenia

4. United Kingdom

5. Czech Republic

6. Poland

7. Finland

8. Russia

9. Saudi Arabia

10. Latvia

11. Estonia

12. Slovak Republic

13. Portugal

14. Sweden

15. Switzerland (Berne)

16. Turkey

17. Denmark

18. Indonesia

19. Israel

20. Italy

21. Greece

22. Luxembourg

23. Ireland

24. Norway

25. South Korea

26. Netherlands

27. China

28. Spain

29. Austria

30. Chile

31. South Africa

32. New Zealand

33. Belgium

34. Argentina

35. Australia

36. Mexico

37. Japan

38. Canada

39. United States of America

40. France

41. Brazil

42. Germany

43. India

33.33%

34.00%

25.00%

30.00%

33.00%

25.00%

25.00%

44.00%

31.00%

27.00%

36.00%

30.62%


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 (10.30%), 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.



2020 tax burden for natural persons(100’000 CHF net income)

This overview shows tax rates for each cantonal capital. The figures are for a net income of 100’000 CHF. In this scenario Canton Zug (represented by its capital, Zug) has the lowest tax rate, 10.30%. 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%.

19.10%Schaffhausen

20.10%Basel-Stadt

21.10%Jura


17.20%Aargau

17.40%Thurgau

20.00%Solothurn

24.10%Neuchatel

21.20%Fribourg

22.80%Vaud

22.40%Geneva

20.00%Valais

21.10%Berne

17.10%Lucerne

13.10%Obwalden

15.00%Nidwalden

14.50%Uri

16.50%Glarus

14.10%Schwyz

10.30%Zug

16.00%Zurich

20.70%St Gall

17.30%Grisons



19.30%Ticino




2020 tax burden for natural persons (sorted according to rate for 100’000 CHF net income)

16.00% 27.80% 40.00%

25.40% 31.50%16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.30% 26.50% 32.20%

17.40% 26.10% 32.40%

18.60% 27.20% 30.70%

19.10% 28.50% 31.10%

19.30% 30.30% 40.60%

20.00% 29.50% 33.70%

20.00% 31.80% 36.50%

20.10% 28.90% 40.50%

20.70% 29.70% 33.30%

21.10% 31.80% 41.40%

21.10% 32.10% 39.90%

21.20% 32.00% 35.80%

21.90% 33.40% 42.20%

22.40% 33.40% 45.00%

22.80% 35.00% 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

18.40% 22.40%10.30%

19.10% 24.30%13.10%

20.70% 24.40%13.80%

22.00% 26.80%14.10%

21.00% 25.30%14.50%

21.80% 25.60%15.00%

1. Zug

2. Obwalden


4. Schwyz

5. Uri

6. Nidwalden

7. Zurich

8. Glarus

9. Lucerne

10. Aargau

11. Grisons

12. Thurgau


14. Schaffhausen

15. Ticino

16. Solothurn

17. Valais

18. Basel-Stadt

19. St Gall

20. Berne

21. Jura

22. Fribourg


24. Geneva

25. Vaud

26. Neuchâtel

Zug

Sarnen

District: Appenzell / Municipality: Appenzell

Schwyz

Altdorf

Stans

Zurich

Glarus

Lucerne

Aarau

Chur

Frauenfeld

Herisau

Schaffhausen

Bellinzona

Solothurn

Sion

Basel

St Gall

Berne

Delémont

Fribourg

Liestal

Geneva

Lausanne

Neuchâtel

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 is 25.70% in the municipality of Enges in Canton Neuchatel, compared with only 24.10% in the canton’s capital, Neuchatel.


2020 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 18.40%. The municipality of Lausanne, with a rate of 35.00%, is at the foot of the rankings.

28.50%Schaffhausen

28.90%Basel-Stadt

32.10%Jura


26.70%Aargau

26.10%Thurgau

29.50%Solothurn

34.20%Neuchatel

32.00%Fribourg

35.00%Vaud

33.40%Geneva

31.80%Valais

31.80%Berne

25.20%Lucerne

19.10%Obwalden

21.80%Nidwalden

21.00%Uri

25.40%Glarus

22.00%Schwyz

18.40%Zug

27.80%Zurich

29.70%St Gall

26.50%Grisons



30.30%Ticino




2020 tax burden for natural persons (sorted according to rate for 250’000 CHF net income)

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


1. Zug

2. Obwalden


4. Uri

5. Nidwalden

6. Schwyz

7. Lucerne

8. Glarus

9. Thurgau

10. Grisons

11. Aargau


13. Zurich

14. Schaffhausen

15. Basel-Stadt

16. Solothurn

17. St Gall

18. Ticino

19. Valais

20. Berne

21. Fribourg

22. Jura


24. Geneva

25. Neuchâtel

26. Vaud

16.00% 27.80% 40.00%

25.40% 31.50%16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.30% 26.50% 32.20%

17.40% 26.10% 32.40%

18.60% 27.20% 30.70%

19.10% 28.50% 31.10%

19.30% 30.30% 40.60%

20.00% 29.50% 33.70%

20.00% 31.80% 36.50%

20.10% 28.90% 40.50%

20.70% 29.70% 33.30%

21.10% 31.80% 41.40%

21.10% 32.10% 39.90%

21.20% 32.00% 35.80%

21.90% 33.40% 42.20%

22.40% 33.40% 45.00%

22.80% 35.00% 41.50%

24.10% 34.20% 38.10%

18.40% 22.40%10.30%

19.10% 24.30%13.10%

20.70% 24.40%13.80%

22.00% 26.80%14.10%

21.00% 25.30%14.50%

21.80% 25.60%15.00%

Zug

Sarnen


Altdorf

Stans

Schwyz

Lucerne

Glarus

Frauenfeld

Chur

Aarau

Herisau

Zurich

Schaffhausen

Basel

Solothurn

St Gall

Bellinzona

Sion

Berne

Fribourg

Delémont

Liestal

Geneva

Neuchâtel

Lausanne

The chart below shows the tax rate for the different cantonal capitals. Rates may vary slightly by municipality due to different communal 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.


2020 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 again, the municipality of Zug is 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.

31.10%Schaffhausen

40.50%Basel-Stadt

39.90%Jura


34.50%Aargau

32.40%Thurgau

33.70%Solothurn

38.10%Neuchatel

35.80%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

31.50%Glarus

26.80%Schwyz

22.40%Zug

40.00%Zurich

33.30%St Gall

32.20%Grisons



40.60%Ticino




2020 tax burden for natural persons (sorted according to marginal tax rate)

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


1. Zug

2. Obwalden


4. Uri

5. Nidwalden

6. Schwyz


8. Schaffhausen

9. Lucerne

10. Glarus

11. Grisons

12. Thurgau

13. St Gall

14. Solothurn

15. Aargau

16. Fribourg

17. Valais

18. Neuchâtel

19. Jura

20. Zurich

21. Basel-Stadt

22. Ticino

23. Berne

24. Vaud


26. Geneva

16.00% 27.80% 40.00%

25.40% 31.50%16.50%

17.10% 25.20% 31.20%

17.20% 26.70% 34.50%

17.30% 26.50% 32.20%

17.40% 26.10% 32.40%

18.60% 27.20% 30.70%

19.10% 28.50% 31.10%

19.30% 30.30% 40.60%

20.00% 29.50% 33.70%

20.00% 31.80% 36.50%

20.10% 28.90% 40.50%

20.70% 29.70% 33.30%

21.10% 31.80% 41.40%

21.10% 32.10% 39.90%

21.20% 32.00% 35.80%

21.90% 33.40% 42.20%

22.40% 33.40% 45.00%

22.80% 35.00% 41.50%

24.10% 34.20% 38.10%

18.40% 22.40%10.30%

19.10% 24.30%13.10%

20.70% 24.40%13.80%

22.00% 26.80%14.10%

21.00% 25.30%14.50%

21.80% 25.60%15.00%

Zug

Sarnen


Altdorf

Stans

Schwyz

Herisau

Schaffhausen

Lucerne

Glarus

Chur

Frauenfeld

St Gall

Solothurn

Aarau

Fribourg

Sion

Neuchâtel

Delémont

Zurich

Basel

Bellinzona

Berne

Lausanne

Liestal

Geneva

Depending on the level of income, it makes sense to compare applicable tax rates across 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 the canton

of Schwyz (which at 21.90% even boasts a slightly lower rate than Zug).

Do your own personal comparison online at www.pwc.ch/international-tax-comparison.

© 2020 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]

PwC’s international tax comparison 2020

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