As revealed in KPMG’s Swiss Tax Report 2017, no noteworthy shifts in tax rates were discernible for the past year as a whole. Following some minor cuts in 2016, indications this year are pointing to yet another unmistakable trend toward stagnating regular corporate tax rates. The circumstances regarding individual tax rates are similar.
Central Switzerland the undisputed leader in corporate tax rates
In a national comparison, the cantons of Central Switzerland continue to top the tax ranking. Most of the Swiss cantons left their regular corporate tax rates unchanged. Switzerland remains competitive on the international tax stage, especially in Europe. In line with the global trend, Swiss corporate income tax rates have dropped on average over the past decade and continue to creep down.
Individual tax rates in Swiss cantons in line with European average
Following a moderate downward trend, average top tax rates for individuals have been stag-nating over the past few years. The cantons of Central Switzerland top the rankings at the national level as well. In an international comparison, the top income tax rates of most Swiss cantons fall in line with the European average.
Clarity in 100 seconds
Although the rejection of the Corporate Tax Reform III is a setback, it’s not an unsurmountable one. The Swiss tax landscape is facing multiple changes ranging from CTR III, to BEPS over CbCR and AEoI. Yet how can Switzerland cope with these challenges? The following clip offers answers.