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ST_Map_170324_v13_Inhalt-2.pdf 1 24.03.2017 11:07:26

20

6

4

e d ito r i a l

Peter UebelhartHead of tax, KPMG Switzerland

Switzerland remains a strong competitor on the global tax stage, according to data analyzed in KPMG’s “Swiss tax report 2017” . the study compares the corporate and individual income tax rates of 130 countries and all 26 Swiss cantons.

this year’s findings cannot yet reflect the impact of recent turbulence on the Swiss tax landscape but they do send

an encouraging signal for Switzerland’s future as a business location.

although the rejection of the Corporate tax reform iii is a setback, it’s not an unsurmountable one. Some cantons have already introduced immediate measures to safeguard their tax appeal. on a national scale, the Swiss government cannot and will not leave companies and investors stranded in uncertainty. at the same time, the regulatory wave rolls on, with BePS and automatic exchange of information bringing increased international pressure. a new package to maintain competitiveness without capsizing stability is surely on the horizon.

KPMG’s tax professionals are keenly observing the developments in Switzerland as well as in the eU, oeCd and G20. Please contact us for more insights and advice on any tax matters.

Peter Uebelhart

Welcome

Clarity on Swiss Taxes

3

Corporate taxation

S w i S S Ta x R e P o RT 2 017

Corporate income tax

Switzerland remains competitive on the international tax stage, especially in europe. a cluster of cantons in central and eastern Switzerland retain their status as lower-tax locations. in line with the global trend, Swiss corporate income tax rates have dropped on average over the past decade and continue to creep down. it remains to be seen whether the cantons will honor the cuts they had announced in anticipation of Ctr iii.

6

7


100 - 1000

Pa rt i C o R P o R aT e Ta x aT i o n : C o R P o R aT e i n C o m e Ta x

Contribution of businesses to tax revenues from direct federal taxes

(by profit levels)

67.01%

13.73%

5.59%

9.59%10.73%

87.86%

0.17% 1.11% 1.27%2.96%

0 - 10 10 - 50 50 - 100 1000+

taxpayers

Contribution to direct federal taxes

taxable profit in CHF 1,000/year

1 according to the Fta Note: latest available data for the tax period 2013. Source: Federal tax administration Fta, 2017 https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/dbst-jp-kantone-2013.html

a small minority of businesses contribute the majority of direct federal taxes, with 2.96% of corporations carrying almost 90% of the tax burden. at the same time, over two thirds of taxpaying corporations pay close to no taxes at all. around 48.4% of total contributions (CHF 4.3 billion1) stem from privileged companies.

Which businesses are shouldering the tax burden?

8

20.6620.66Jura

16.6816.12Grisons

15.0114.92Uri

12.3212.43

12.6612.66

12.6612.66

13.0413.04

14.1614.16

14.6014.60

15.2715.27

15.6115.61

15.7015.70

16.0415.97

16.4316.43

17.4017.40

18.6118.61

19.8619.86

20.6720.67

20.7020.70

21.1521.15

21.8521.49

21.6421.64

21.7421.74

22.0922.09

22.1822.18

24.1624.16

2016

2017

Corporate income tax rates in the cantons – 2016 and 2017 the cantons of central Switzerland continue to lead the tax league. the majority of cantons did not make any changes to their ordinary tax rates. While lucerne raised tax rates slightly, Schaffhausen, Grisons and Solothurn reduced their corporate income tax rates. only Uri reduced its tax rate repeatedly. a further reduction is to be expected among cantons with high taxation in the coming years.

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Ge, JU, Ne, SG, tG and ZH for 2016. Source: KPMG Switzerland

Nidwalden

lucerne

obwalden

appenzell a.

appenzell i.

Zug

Schwyz

Glarus

Neuchâtel

Schaffhausen

thurgau

St. Gallen

aargau

Fribourg

ticino

Basel-landschaft

Zurich

Solothurn

Bern

Valais

Vaud

Basel-Stadt

Geneva

Figures in percent


9

22.76 21.49Solothurn - 1.27

21.12 20.66Jura - 0.46

16.98 16.43thurgau

Corporate income tax rates in the cantons – trend in 2007 and 2017 Besides the cantons of central Switzerland, appenzell a., Glarus, Schaffhausen, Neuchâtel, and in particular Grisons, have also significantly reduced their tax rates for corporations over the past ten years. in the Mittelland region, western Switzerland and the city cantons, changes to ordinary corporate income tax rates have been significantly smaller. only the canton of Valais has increased its tax rates slightly over the last decade.

- 0.55

18.90 12.43 13.12 12.66 17.27 12.66 18.04 13.04 15.47 14.16 16.10 14.60 16.32 14.92 19.76 15.27 22.18 15.61 19.98 15.70 22.84 15.97 29.06 16.12

19.08 17.40 22.32 18.61 21.95 19.86

22.00 20.67 25.65 20.70 21.32 21.15

23.40 21.64 21.57 21.74 23.53 22.09 24.81 22.18 24.24 24.16

lucerne

obwalden

Nidwalden

appenzell a.

appenzell i.

Zug

Uri

Schwyz

Neuchâtel

Glarus

Schaffhausen

Grisons

St. Gallen

aargau

Fribourg

ticino

Basel-landschaft

Zurich

Bern

Valais

Vaud

Basel-Stadt

Geneva

- 6.47

- 0.46

- 4.61

- 5.00

- 1.31

- 1.50

- 1.40

- 4.49

- 6.57

- 4.28

- 6.87

- 1.68

- 3.71

- 2.09

- 1.33

- 4.95

- 0.17

-1.76

0.17

- 1.44

- 2.63

- 0.08


- 12.94

2007

2017

Figures in percent


10

Genf

Basel-Stadt

Waadt

Bern

Zürich

Aargau

CH Durchschnitt

St. Gallen

Graubünden

Schaffhausen

Neuenburg

Schwyz

Zug

Nidwalden

Obwalden

Luzern

19.44%20.76%

18.70%18.96%18.06%18.31% 17.90%18.01% 17.80%17.89%

2007


2008 2009 2010 2011 2012 2013 2014 2015 2016

- 2.99%

Corporate income tax rates in the cantons – trend from 2007 to 2017 the corporate income tax rates continue to drop slightly on average.

Corporate income tax rates in the cantons – trend from 2007 to 2017 after smaller reductions in 2016, corporate tax rates look set to remain stable in 2017. only Schaffhausen and Grisons saw renewed reductions, while lucerne increased its tax rates.

30%

28%

26%

24%

22%

20%

18%

16%

14%

12%

Geneva

VaudBasel-Stadt

BernZurich

aargau

CH-averageSt. Gallen

GrisonsSchaffhausen

SchwyzZug

Nid-/obwaldenlucerne

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Neuchâtel

17.77%

2017

2017


11

Corporate income tax rates in the cantons in 2017

20.7Jura

19.9Fribourg

21.7Valais

21.6Bern

21.5Solothurn

22.1Vaud

20.7Basel-Landschaft

18.6Aargau

22.2Basel-Stadt

12.4Lucerne

12.7Obwalden

15.6Neuchâtel

24.2Geneva

Cantons with a corporate income tax rate below the Swiss average (17.77%)

Figures in percent

Cantons with a corporate income tax rate above the Swiss average (17.77%)

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Ge, Ne, SG, tG, ZH for 2016. Source: KPMG Switzerland


12

18.6Aargau 21.2

Zurich

16.0Schaffhausen

16.4Thurgau

13.0Appenzell A.

14.2Appenzell I.

12.4Lucerne

12.7Nidwalden

14.9Uri 16.1

Grisons

17.4St. Gallen

15.7Glarus

15.3Schwyz

14.6Zug

20.7Ticino


13

* 13.79% in the first 5 years Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Ge, Ne, SG, tG, ZH for 2016. Source: KPMG Switzerland.

Which tax rates had been announced for CTR III?

the majority of cantons had announced their corporate income tax rates as of 2019 assuming Ctr iii was approved. Since this was not the case it is questionable whether the cantons will stick to the announced rates.

BS

22.1

813

.04

BL

20.7

014

.00

So

21.4

912

.90

ne

15.6

115

.61

LU

Be21

.64

16.3

7FR

19.8

613

.72

VD

22.0

913

.79

Ge

24.1

613

.49*

announced corporate tax rate reduction


14

Corporate income taxation within the cantons 2017 vs 2019

Figures in percent

14.0

0

SH

15.9

712

.50

TG

16.4

313

.42

ZH

21.1

518

.20

LU

12.4

312

.43

ZG

14.6

012

.00

SG

17.4

015

.00

Ti

20.6

716

.20

nw

12.6

612

.66


15

15.27

- 0.07

16.68 | 16.12

16.43

16.00

16.04 | 15.97

15.70

15.01 | 14.92

15.00

15.00

15.00

18.61

15.61

18.00

The cantons and european countries compared overall, the european tax landscape shows quite a few changes that mix up the ranking in 2017. led by the huge ten-percentage-point drop from Hungary, the upper half also includes a two percentage-point drop from Croatia. Nevertheless, the cantons of central Switzerland are not lacking in attractiveness. lower income tax rates in the international sphere are applied in particular by the Channel islands and the countries of Southeast europe. ireland remains the most significant competitor for Switzerland.

17.40

14.60

14.16

12.66

12.50

12.50

12.50

12.32 | 12.43

20.00 | 18.00

10.00

19.00 | 9.00

12.66

+/– 0

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for albania, Ne, SG and tG for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html


13.04

- 0.09

Schaffhausen

romania

Glarus

thurgau

Grisons

albania

Serbia

lithuania

Uri

Ukraine

Neuchâtel

Guernsey

Montenegro

Hungary

Bulgaria

Croatia

lucerne

ireland

liechtenstein

Cyprus

Nidwalden

obwalden

appenzell i.

Schwyz

Zug

St. Gallen

aargau

appenzell a.

Jura

9.00

- 10.00

+ 0.11

- 0.56

- 2.00

19.00Poland

16

22.09

29.00

25.00 | 24.00

22.18

21.64

20.70

20.67

20.00

22.00 | 21.00

24.16

19.86

35.00

33.33

31.40 | 24.00

25.00

29.72 | 29.79

29.22 | 27.08

25.00

25.00

22.00

22.00

21.85 | 21.49

21.74

21.15

20.66

20.00 | 19.00

20.00

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for the Netherlands, Spain, Ge, JU and ZH for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html

Greece

Norway

Basel-Stadt

Bern

Geneva

Fribourg

UK

Basel-landschaft

Slovakia

turkey

ticino

Zurich

Valais

Solothurn

Sweden

Vaud

Jura

estonia

denmark

the Netherlands

austria

luxembourg

Germany

Spain

italy

France

Malta

- 1.00

- 1.00

- 0.36

- 1.00

- 7.40

- 2.14

+ 0.07

17.00 | 19.00Slovenia + 2.00 2017

+/- compared with previous year

Figures in percent

Countries in the lower half of the ranking also amended tax rates in 2017. While the UK, Slovakia, Norway, luxembourg and especially italy reduced tax by between one and seven-point-four percentage points, Slovenia was the only one to increase the rate.


17

17.00 25.50+ 8.50

30.86

34.61

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for russia for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html

Global comparison – selected countries Hong Kong and Singapore are considered attractive tax locations, comparable to known offshore domains such as Bermuda or dubai. internationally, Switzerland falls within the middle range with its tax rates.

40.00

34.00

30.00

28.00

26.50

25.00

25.00

24.00

20.00

17.80 | 17.77

17.00

16.50

10.00

25.00

0.00

0.00

0.00

0.00

0.00

- 0.03

Trends: countries 2007 – 2017Few countries have increased their corporate tax rates in recent years. Hungary, which until now had raised its taxes, cut its corporate tax rates by 7% this year.

28.00 30.00 18.00 20.00

25.00 29.00

19.00 21.00

+ 2.00

+ 2.00

+ 4.00

+ 2.00

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html

2007

2017

Figures in percent


Chile

Japan

india

Bahamas

Bahrain

Bermuda

Cayman islands

dubai

Qatar

Hong Kong

Singapore

Swiss average

russia

Malaysia

China

indonesia

Panama

Canada

South africa

australia

Brazil

USa

Mexico

iceland

Greece

Slovakia

2017


Figures in percent

18

17.50 16.50

29.63 27.08

- 1.00

- 2.55

33.00 25.00- 8.00

- 6.00

38.36 29.79- 8.57

24.00 20.00- 4.00

16.00 9.00- 7.00

40.69 30.86- 9.83

25.00 20.00- 5.00

Trends: countries 2007 – 2017the states in the Middle east have made the most impressive cuts in taxation over the past ten years, with the largest drop seen in Kuwait (40%). the UK has announced its intention to cut the corporate income tax rate to 17% by 2020 and Hungary has already enacted a decrease to 9% this year.

55.00 15.00 35.00 10.00 35.00 10.00 37.25 24.00

28.00 22.00

25.50 25.00

20.76 17.77

27.50 22.00

27.00 24.00 20.00 17.00

- 40.00

- 25.00

- 25.00

- 13.25

30.00 19.00- 11.00

- 0.50

- 2.99

- 5.50

- 3.00

- 3.00

2007

2017

Figures in percent

Hong Kong

luxembourg

China

Sweden

Germany

russia

Hungary

Japan

Jordan

Kuwait

Gibraltar

Qatar

italy

the Netherlands

Swiss average

South Korea

Malaysia

Singapore

UK

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for the Netherlands, Gibraltar and russia for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html


19

Individualtaxationincome tax

on a global scale the Swiss cantons are rated among the most attractive in terms of tax rates for high-income individuals. the moderate downward trend of the Swiss average individual tax rates looks to be leveling off in 2017. Nevertheless, the tax burden is still borne by the wealthiest 1% of the Swiss population.

Pa rt i i S w i S S Ta x R e P o RT 2 017

20


21

52.54%

Pa rt i i i n D i V i D Ua L Ta x aT i o n : i n C o m e Ta x

2.68%

35.39%

7.09%

26.21%

8.36%

15.64%16.52%

14.98%

12.81%

4.23%

0 - 50 50 - 75

taxpayers

Contribution to direct federal taxes

taxable income in CHF 1,000 / year

Note: latest available data for the tax period 2013. Source: Federal tax administration Fta, 2017: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2013.html

3.55%

75 - 100 100 - 150 150 - 200 200+

Contribution of individuals to tax revenues from direct federal taxes

(by income bracket)

approximately 3.55% of taxpayers – i.e. the highest-income individuals – account for more than 50% of the direct individual tax.

Who shoulders the tax burden in Switzerland?

22

41.30

5.00

6.95

Contribution of individuals to tax revenues from direct federal taxes

(by income bracket)

0.00

78.70

Percentage share of taxpayers in direct federal taxes

Note: latest available data for the tax period 2013, including persons taxed on a lump-sum basis and taxpayers where income taken into account in determining the tax rate is different from the taxable income. Source: Federal tax administration Fta, 2017: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2013.html

0.18 0.38 0.67 1.05 1.782.81

4.65

9.69

10.50

3.70

7.00

10 200 30 40 50 60 70 80 90

99 - 100

98 - 99

97 - 98

96 - 97

95 - 96

90 - 95

11.30

100

Figures in percent

the 10% with the highest income account for almost 80% of the direct individual tax burden. the 1% with the highest income bear 41.3% (prior year 41%) of the tax burden.


23

40.4640.46

25.5525.55

25.0225.02

22.8622.86

24.3024.30

25.4925.35

28.2128.21

30.4830.48

31.5631.56

31.1731.74

32.4032.18

32.4832.48

32.4932.29

33.5233.52

34.0534.05

34.5034.18

36.0236.02

36.5036.50

37.4337.43

39.0439.33

39.7639.76

40.7240.72

41.2741.27

41.5041.50

42.1742.17

44.7544.75

2016

2017

income tax rates in the cantons – 2016 and 2017the cantons of central Switzerland continue to have the lowest tax rates. Uri, Grisons andSchaffhausen have lowered their individual tax rates. as with the corporate tax rate, lucerne was the only canton to raise the tax rate for individuals. the highest individual tax rates are seen in cantons that also have the highest corporate tax rates.

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. income tax rates for ai and SG are for 2016. Source: KPMG Switzerland

Figures in percent


Jura

obwalden

Zug

appenzell i.

Nidwalden

Uri

Schwyz

appenzell a.

Glarus

Grisons

lucerne

thurgau

Schaffhausen

St. Gallen

aargau

Solothurn

Fribourg

Valais

Basel-Stadt

Zurich

Neuchâtel

ticino

Bern

Vaud

Basel-landschaft

Geneva

24

33.99%34.61%34.85%

34.05%34.25% 33.76%33.84% 33.86%33.77% 33.99%33.98%

2007


2008 2009 2010 2011 2012 2013 2014 2015 2016

- 0.86%

income tax rates in the cantons – trend from 2007 to 2017the average individual tax rate appears to be stagnating at a value of 33.99% over the past two years.

2017


25

25.2032.29Schaffhausen

32.5531.74lucerne

41.0240.72

26.1425.02

23.1022.86

24.0124.30

26.7425.55

33.0025.35

25.1928.21

31.2630.48

34.4931.56

32.9532.18

35.6332.48

36.1633.52

36.8434.05

36.4734.18

36.3336.02

37.0036.50

38.9137.43

39.3439.33

40.1639.76

43.5440.46

41.2841.27

41.5041.50

42.5542.17

44.7644.75



2007

2017

Figures in percent

income tax rates in the cantons – trend from 2007 to 2017the central Swiss cantons have been leading the individual tax ranking for over a decade. apart from Uri, the other cantons have made no or only minor reductions in income tax rates. obwalden, Schaffhausen and Schwyz are the only cantons to have actually increased their tax rates. little to no variation can be found in the cantons with traditionally higher individual income taxes.

ticino

appenzell i.

obwalden

Zug

Nidwalden

Uri

Schwyz

appenzell a.

Grisons

Glarus

thurgau

St. Gallen

aargau

Solothurn

Fribourg

Valais

Basel-Stadt

Zurich

Neuchâtel

Jura

Bern

Vaud

Basel-landschaft

Geneva

26

income tax rates in the cantons – trend from 2007 to 2017With the exception of a distinguishable upward trend in the individual income tax rates of Schaffhausen and Schwyz, and a downward trend in aargau, thurgau and St. Gallen, the tax rates have remained fairly consistent in the Swiss cantons.

45%

40%

35%

30%

25%

20%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geneva

Vaud

Basel-Stadt

Bern

Zurich

aargauSwiss averageSt. Gallen

Schwyz

Zug

obwalden

thurgau

Nidwalden

Neuchâtel

lucerneSchaffhausen


27

individual income tax rates in the cantons in 2017

40.5Jura

36.5Valais

41.3Bern

34.2Solothurn

41.5Vaud

42.2Basel-Landschaft

34.0 Aargau

37.4Basel-Stadt

31.7 Lucerne

24.3Obwalden

44.8 Geneva

Cantons with an individual income tax rate below the Swiss average (33.99%)

Figures in percent

Cantons with an individual income tax rate above the Swiss average (33.99%)



39.3Neuchâtel

36.0Fribourg

28

34.0 Aargau

31.7 Lucerne

39.8Zurich

32.3 Schaffhausen

32.5 Thurgau

30.5 Appenzell A.

25.0 Appenzell I.

25.6 Nidwalden

25.4 Uri 32.2

Grisons

33.5St. Gallen

31.6 Glarus

28.2 Schwyz

22.9 Zug

40.7Ticino


29

22.86

35.00

35.00

34.50 | 34.18

34.05

33.52

32.48

32.49 | 32.29

32.40 | 32.18

32.00

31.17 | 31.74

31.56

30.48

25.02

20.00

The cantons and european countries compared the individual income tax rates continue to be particularly low in the countries of Southeast europe. as with corporate taxation, most of the Swiss cantons lie in the middle in terms of individual income tax rates. Western european and Scandinavian countries levy income tax at relatively high rates. although already ranking among the countries with the top rates, luxembourg and Sweden increased their tax rates in 2017. the annual tax adjustments in Finland and denmark resulted in a reduction this time.

28.21

25.49 | 25.35

25.55

24.30

23.00

22.00

20.00

18.00

15.00

15.00

10.00

+ 0.57

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. appenzell i., St. Gallen: income tax rates for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html


- 0.14

luxembourg

the Netherlands

Finland

Cyprus

appenzell a.

Glarus

lucerne

Poland

Grisons

Schaffhausen

thurgau

aargau

Solothurn

turkey

St. Gallen

appenzell i.

Jersey

Bulgaria

Hungary

lithuania

Ukraine

estonia

Czech republic

Zug

latvia

obwalden

Nidwalden

Uri

Schwyz

- 0.22

- 0.20

- 0.32

36.02Fribourg

30

54.25 | 54.00

52.00

50.00

50.00

44.00 | 48.78

48.00

46.90 | 46.72

46.25 | 46.24

40.72

57.10 | 61.85

55.00

45.00

45.00

45.00

44.75

43.00

42.17

41.50

41.27

40.46

39.76

39.04 | 39.33

37.43

36.50 2017


Figures in percent

45.00

56.40 | 55.79

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Portugal, Slovenia: income tax rates for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html

- 0.01

- 0.18

- 0.61

iceland

Norway

ireland

luxembourg

Slovenia

Belgium

the Netherlands

Finland

ticino

Valais

Basel-Stadt

Neuchâtel

Zurich

Jura

Bern

Vaud

Basel-landschaft

italy

Geneva

Germany

UK

Greece

austria

denmark

Sweden

Spain

+ 0.29

48.00Portugal

+ 4.78

- 0.25

+ 4.75


31

45.00 45.00China

28.00 28.00

15.00 15.00

Global comparison (selected countries)While the well-known offshore domains continue to reject the idea of introducing individual income taxes, countries such as Japan or South africa show very high income taxes in a global comparison.

0.00

13.00 13.00

20.00 20.00

27.50 27.50

30.00 30.00 33.00 33.00 33.99 33.99 35.54 35.54 39.60 39.60

41.00 45.00

45.00 45.00

55.95 55.95

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. australia, Bahamas, Bahrain, Hong Kong, Japan, oman, Qatar, Uae: income tax rates for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html

22.00 22.00

2016

2017

Figures in percent 0.00

0.00

0.00

0.00

0.00

0.00


Malaysia

Hong Kong

Bahamas

Bahrain

Bermuda

Cayman islands

oman

Qatar

Uae

russia

Jordan

Brazil

indonesia

New Zealand

Swiss average

india

USa

South africa

australia

Japan

Singapore

32

16.00 15.00-1.00Hong Kong

24.00 10.00- 14.00Bulgaria

40.00 45.00

39.00 48.78

+ 5.00

40.00 45.00

18.00 20.00

45.00 45.00

35.00 39.60

30.00 35.00 41.00 48.00

+ 5.00

+ 2.00

0.00

+ 4.60

+ 9.78

+ 5.00

+ 7.00

- 0.86

25.00 23.00

34.85 33.99

- 2.00

25.00 20.00- 5.00

Trends: countries 2007 – 2017the introduction of a flat rate tax affected eastern european countries most, with a significant decline in the tax rates of Bulgaria, Hungary, lithuania and the Czech republic. especially in Western europe, income taxes have risen.

36.00 15.00

27.00 15.00 32.00 22.00 40.00 32.00

45.00 40.00 59.00 55.79

28.00 28.00

43.00 45.00

35.70 46.24

- 21.00

- 12.00

- 10.00

- 8.00

- 5.00

- 3.21

0.00

+ 2.00

+ 10.54

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Croatia, Hong Kong: income tax rates for 2016. Sources: KPMG Switzerland, KPMG international: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html

2007

2017

Figures in percent

UK

luxembourg

Greece

isle of Man

Germany

USa

Cyprus

ireland

latvia

Swiss average

Jordan

Hungary

lithuania

Czech republic

Poland

Croatia

denmark

Malaysia

Spain

iceland


33

Clarity on mergers & acquisitions

Clarity on Transformation in Private Banking

annual report KPmG Switzerland 2016

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“Clarity on” publications this series of publications from KPMG Switzerland provides insights, analyses and studies on a range of topics. all publications are available as hard copies as well as online. For more information, please contact [email protected].

Latest issues

P i N B oa r d

34

Clarity on Tax Cyber Security

May 2016

12Key Findings Main results of KPMG`s survey 2016

14Interviews Markus Braendle, ABB Michael Schoch, FINMA Max Klaus, MELANI Florian Widmer, Zurich Insurance Group

38Upcoming Issues The next wave of challenges in Cyber Security

Clarity onCyber SecurityNever a dull moment

Now or never Swiss Ceo outlook 2016

Clarity on Tax Function Transformation

PublisherKPMG aGBadenerstrasse 172Po BoxCH-8036 Zurich

orderstax Marketing+41 58 249 29 [email protected]

Concept and editingeva Häfliger, KPMG aG

Designdany Studerus, KPMG aG

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PERFORMANCE

For further information on Clarity on Swiss Taxes

Please contact:

Peter Uebelhart Head of tax and Member of the executive Committee+41 58 249 42 [email protected]

Your local contacts for tax matters:

Zurich / ticino Stefan KuhnPartner+41 58 249 54 [email protected]

Mittelland Hans Jürg SteinerPartner+41 58 249 20 [email protected]

Western Switzerland Vincent ThalmannPartner+41 58 249 64 [email protected]

Central Switzerland Dr. Frank LampertPartner+41 58 249 49 [email protected]

eastern Switzerland Dr. Peter michaelPartner+41 58 249 25 [email protected]

BaselReiner DennerPartner+41 58 249 42 [email protected]


C o N taC t S & i M P r i N t

articles may only be republished by written permission of the publisher and quotingthe source “KPmG’s Clarity on Swiss Taxes”.

the information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received, or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. the scope of any potential collaboration with audit clients is defined by regulatory requirements governing auditor independence.

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