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Favorable corporate and personal taxes
Tax rates for companies and individuals in
Switzerland and in the Greater Zurich Area are among the lowest
anywhere in Europe. At federal level, profit is taxed at a flat
rate of 8.5%, (i.e. after taxes at an effective rate of 7.83%). At
cantonal level, corporate income tax rates are between 15-25%
(whole of Switzerland 12-26%). A careful selection and design of
company structures can minimize the effective tax rate to below
8%.
Personal income tax rates in the Greater Zurich Area are between
5-25%. Cantonal income tax varies depending on the municipality.
Like federal income tax it is calculated progressively, i.e. the
tax rate increases commensurate with personal income gains.
Married couples jointly pay taxes on their combined income and
enjoy a lower tax rate than non-married couples with similar
incomes.
 Swiss
Tax System
Cost
Benefit: Tax Privileges for Corporations
Corporate income tax
Personal income tax
Case-by-case treatment of expatriates
For expatriates, i.e. taxable foreign nationals on a temporary
work assignment in Switzerland, there are special federal tax
benefits. Most cantons also give expatriates preferred tax
treatment. Expatriates are either assessed by due process of
law, or they are subject to withholding tax, which the employer
deducts directly from their paycheck. The tax rates include
certain tax-free allowances for work-related expenses, insurance
premiums and family upkeep. Expenses such as moving costs or
tuition for international schools are also deductible.
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