Corporate and individual taxes and incentives

Switzerland's decentralized structure shapes the country's tax system. Companies are taxed at federal (national), cantonal and municipal (communal) level.  All these taxes are collected by a single authority, usually by the canton. Some cantons may offer tax holidays or cash incentives after a thorough screening of a company’s business plan. Many cantons also offer R&D super deductions and a patent box. Currently, Switzerland has double taxation agreements (DTA) with approx. 120 countries. At 27.8%, Switzerland enjoys the lowest fiscal quota in Europe (tax revenues including social security contributions as a percentage of GDP).

Switzerland's decentralized structure shapes the country's tax system. Individuals are taxed at federal (national), cantonal and municipal (communal) level. Individual taxation in Switzerland is very moderate. Middle-class incomes are typically taxed at one third or half of the European rates. The maximum rate applies from an income of CHF 300,000 to 400,000 per year, ranging from 23% to 35% in the Zurich region. The BAK Taxation Index shows a median of 29.4% for Greater Zurich, well below the average European tax rate of 42.9%.