PwC’s tax comparison 2021

PwC’s tax comparison 2021

www.pwc.ch/taxcomparison

Contents

Comparison of taxes for corporations and individuals 4

Comparing taxes: legal entities 5

2021 corporate tax rates in Switzerland 6

2021 corporate tax rates in the EU and Switzerland 7

2021 corporate tax rates in OECD and G20 countries 8

Comparing taxes: natural persons 9

2021 tax burden for individuals (100,000 CHF net income) 10

2021 tax burden for individuals (250,000 CHF net income) 12

2021 tax burden for individuals (marginal tax rate) 14

Your contacts 16

3 PwC’s tax comparison 2021

Comparison of taxes for corporations and individuals

Comparing taxes: legal entities

PwC’s tax comparison is designed to give you a quick overview of tax rates for corporations and individuals.Tax rates for individuals vary depending on their taxable income.

You can compare the cantonal tax rates at three levels, with a taxable income of 100,000 CHF, 250,000 CHF and the marginal tax rate.

When it comes to corporate tax, 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.

Put together your own comparisons, and feel free to contact us if you have any questions.

Armin Marti Partner Leader Tax Policy

Stefan Schmid Partner Leader International Tax Services

Kornel Wick Director Tax & Legal Services

13.94%Schaffhausen

13.04%Basel-Stadt

17.02%Jura

17.97%Basel-Landschaft

18.55%Aargau

13.36%Thurgau

15.75%Solothurn

13.57%Neuchâtel

13.99%Fribourg

14.00%Vaud

14.00%Geneva

18.57%Valais

21.04%Berne

12.32%Lucerne

12.74%Obwalden

11.97%Nidwalden

12.63%Uri

12.33%Glarus

14.06%Schwyz

11.85%Zug

19.70%Zurich

14.50%St Gall

14.77%Grisons

12.66%Appenzell Innerrhoden

13.04%Appenzell Ausserrhoden

19.16%Ticino

Low tax rates High tax rates

Corporate tax rates were cut in 12 cantons compared to 2020.

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

A further reduction in tax rates, which are already attractive by international standards, can be achieved, for example, through the additional deduction of R&D costs, the patent box deduction and the deduction on net equity (only in the canton of Zurich).

Further details are available here.

PwC’s tax comparison 2021 4 5 PwC’s tax comparison 2021

https://www.pwc.ch/en/services/tax-advice/tax-calculator.html

https://www.pwc.ch/en/services/tax-advice/corporate-taxes-tax-structures/corporate-tax-reform-iii.html

2021 corporate tax rates in Switzerland

2021 corporate tax rates in the EU and Switzerland

Within the cantons themselves, corporate tax rates vary considerably depending on where an entity is located or moving to. There are various cantons with an uniform tax

The Swiss cantons with the lowest tax rates are attractive compared to the lowest tax rates of the EU countries. With a tax burden twice as high, the highest-tax cantons rank in mid-table internationally.

rate for all municipalities, while in other cantons the tax rate may vary due to municipality-dependent multipliers. The table shows the rate for the cantonal capital.

The lowest tax cantons on the other hand are near the top of the ranking. The chart compares the corporate tax rates in Zug and Berne with the tax rates in all EU countries.

2021 corporate tax rates in Switzerland 2021 corporate tax rates in the EU and Switzerland

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

2021 tax burden in cantonal capital

1. Zug

2. Nidwalden

3. Lucerne

4. Glarus

5. Uri

6. Appenzell Innerrhoden

7. Obwalden

8. Appenzell Ausserrhoden

9. Basel-Stadt

10. Thurgau

11. Neuchâtel

12. Schaffhausen

13. Fribourg

14. Vaud

15. Geneva

16. Schwyz

17. St Gall

18. Grisons

19. Solothurn

20. Jura

21. Basel-Landschaft

22. Aargau

23. Valais

24. Ticino

25. Zurich

26. Berne

13.04%

14.00%

13.94%

12.74%

12.32%

12.33%

12.63%

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

11.85%

11.97%

13.04%

13.57%

14.00%

14.50%

14.77%

15.75%

17.02%

19.16%

18.57%

21.04%

14.06%

17.97%

18.55%

13.36%

13.99%

19.70%

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

* Note: special tax refund rules apply

2021 corporate tax rate

9.00%

10.00%

11.85%

12.50%

15.00%

16.00%

18.00%

19.00%

19.00%

19.00%

20.00%

20.00%

20.00%

21.00%

21.00%

20.60%

22.00%

24.00%

22.00%

21.04%

25.00%

25.00%

25.00%

25.00%

25.00%

24.94%

28.00%

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. Finnland

13. Latvia

14. Sweden

15. Portugal

16. Slowak Republic

17. Switzerland (Berne)

18. Denmark

19. Greece

20. Italy

21. Luxembourg

22. Ireland

23. Netherlands

24. Austria

25. Spain

26. Belgium

27. France

28. Malta*

29. Germany 36.00%

PwC’s tax comparison 2021 6 7 PwC’s tax comparison 2021

2021 corporate tax rates in OECD and G20 countries

Comparing taxes: individuals

The Swiss cantons with the lowest tax rates are attractive compared to the lowest tax rates in the OECD/G20.

With tax rates twice as high, the highest-tax cantons rank in mid-table internationally.

Income 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 (9.60%) and Neuchâtel the highest (23.20%). Maximum marginal tax rates for high incomes range from 22.20% in Zug, all the way up to 45.00% in Geneva.

Find out where your canton of residence is located tax-wise compared to other cantons. Here you will find an interactive map of Switzerland, with which you can make your own comparison.

We present an overview of the cantons on the next few pages.

2021 corporate tax rates: OECD and G20 countries

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

9.00%

11.85%

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%

20.60%

23.00%

24.00%

22.00%

24.94%

21.04%

25.00%

25.00%

25.00%

25.00%

28.00%

30.00%

30.00%

28.00%

25.00%

1. Hungary

2. Switzerland (Zug)

3. Slovenia

4. United Kingdom

5. Czech Republic

6. Poland

7. Finland

8. Russia

9. Saudi-Arabien

10. Latvia

11. Estonia

12. Sweden

13. Slovak Republic

14. Portugal

15. Switzerland (Berne)

16. Turkey

17. Denmark

18. Indonesia

19. Greece

20. Israel

21. Italy

22. Luxembourg

23. Ireland

24. Norway

25. South Korea

26. Netherlands

27. China

28. Spain

29. Austria

30. Belgium

31. Chile

32. South Africa

33. New Zealand

35. France

35. Argentina

36. Australia

37. Mexico

38. Japan

39. United States of America

40. Brazil

41. Germany

42. Canada

43. India

28.00%

34.00%

25.00%

30.00%

33.00%

25.00%

25.00%

44.00%

38.00%

27.00%

36.00%

30.62%

2021 corporate tax rate

9 PwC’s tax comparison 2021PwC’s tax comparison 2021 8


2021 tax burden for individuals(100,000 CHF taxable income)

The map shows tax rates for each cantonal capital. The figures are for a taxable income of 100,000 CHF. In this scenario Canton Zug has the lowest tax rate of 9.60%.

The most expensive place for a taxable income of 100,000 CHFis Neuchâtel. The tax rate there is 23.20 percent and therefore more than twice as high as in Zug.

18.00%Schaffhausen

19.80%Basel-Stadt

21.00%Jura


17.20%Aargau

17.30%Thurgau

20.00%Solothurn

23.20%Neuchâtel

20.90%Fribourg

22.10%Vaud

21.30%Geneva

20.00%Valais

21.00%Berne

17.00%Lucerne

14.00%Obwalden

15.00%Nidwalden

14.50%Uri

16.10%Glarus

13.40%Schwyz

9.60%Zug

15.90%Zurich

20.50%St Gall

17.10%Grisons



18.90%Ticino

2021 tax burden for individuals (sorted by tax rate for a taxable income of 100,000 CHF)

0% 10% 20% 30%

100,000 CHF taxable income

15.90%

16.10%

17.00%

17.10%

17.20%

17.30%

18.00%

18.60%

18.90%

19.80%

20.00%

20.00%

20.50%

20.90%

21.00%

21.00%

21.30%

21.90%

22.10%

23.20%

9.60%

13.30%

13.40%

14.00%

14.50%

15.00%

1. Zug


3. Schwyz

4. Obwalden

5. Uri

6. Nidwalden

7. Zurich

8. Glarus

9. Lucerne

10. Grisons

11. Aargau

12. Thurgau

13. Schaffhausen


15. Ticino

16. Basel-Stadt

17. Solothurn

18. Valais

19. St Gall

20. Fribourg

21. Berne

22. Jura

23. Geneva


25. Vaud

26. Neuchâtel

Zug

Appenzell

Schwyz

Sarnen

Altdorf

Stans

Zurich

Glarus

Lucerne

Chur

Aarau

Frauenfeld

Schaffhausen

Herisau

Bellinzona

Basel

Solothurn

Sitten

St Gall

Fribourg

Berne

Delsberg

Geneva

Liestal

Lausanne

Neuchâtel

The chart below shows the tax rates for the different cantonal capitals. However, in some cases there are big differences within individual cantons. In this scenario,

for example, the highest tax rate in Canton Neuchâtel is 24.80% in the municipality of Enges, compared to 23.20% in the canton’s capital, Neuchâtel.



2021 tax burden for individuals(250,000 CHF taxable income)

The map shows tax rates for each cantonal capital. The figures are for a taxable income of 250,000 CHF. This ranking is also headed by the municipality of Zug with an attractive tax rate of 18.10%.

Lausanne, on the other hand, is at the bottom of the list with a tax rate of 34.60%.

2021 tax burden for individuals (sorted by tax rate for a taxable income of 250,000 CHF)

0% 10% 20% 30% 40%

250,000 CHF taxable income

27.80%

25.10%

26.50%

26.60%

26.10%

27.20%

27.30%

29.90%

28.60%

29.50%

31.70%

29.70%

31.70%

31.70%

31.80%

34.50%

33.40%

34.60%

33.30%

18.10%

21.20%

20.20%

20.20%

21.00%

21.80%

1. Zug


3. Obwalden

4. Uri

5. Schwyz

6. Nidwalden

7. Glarus

8. Lucerne

9. Thurgau

10. Grisons

11. Aargau


13. Schaffhausen

14. Zurich

15. Basel-Stadt

16. Solothurn

17. St Gall

18. Ticino

19. Berne

20. Fribourg

21. Jura

22. Valais

23. Neuchâtel


25. Geneva

26. Vaud

Zug

Appenzell

Sarnen

Altdorf

Schwyz

Stans

Glarus

Lucerne

Frauenfeld

Chur

Aarau

Herisau

Schaffhausen

Zurich

Basel

Solothurn

St Gall

Bellinzona

Berne

Fribourg

Delsberg

Sitten

Neuchâtel

Liestal

Geneva

Lausanne

25.10%

The chart below shows the tax rates 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 here.

27.30%Schaffhausen

28.60%Basel-Stadt

31.70%Jura


26.60%Aargau

26.10%Thurgau

29.50%Solothurn

33.30%Neuchâtel

31.70%Fribourg

34.60%Vaud

34.50%Geneva

31.80%Valais

31.70%Berne

25.10%Lucerne

20.20%Obwalden

21.80%Nidwalden

21.00%Uri

25.10%Glarus

21.20%Schwyz

18.10%Zug

27.80%Zurich

29.70%St Gall

26.50%Grisons



29.90%Ticino




2021 tax burden for individuals(marginal tax rate)

The map shows tax rates for each cantonal capital. The figures refer to the marginal tax rate. The municipality of Zug is again at the top of the ranking with a tax rate of 22.20%.

At the bottom of the list is the city of Geneva, where the tax rate of 45.00% is more than twice as high as in Zug.

2021 tax burden for individuals(sorted according to marginal tax rate)

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

Marginal tax rate

40.00%

31.10%

31.20%

32.20%

34.50%

32.40%

30.80%

30.70%

40.10%

40.50%

33.70%

36.50%

33.30%

35.50%

41.20%

41.20%

45.00%

42.20%

41.50%

38.10%

22.20%

23.80%

26.80%

24.30%

25.30%

25.60%

1. Zug


3. Obwalden

4. Uri

5. Nidwalden

6. Schwyz


8. Schaffhausen

9. Glarus

10. Lucerne

11. Grisons

12. Thurgau

13. St Gall

14. Solothurn

15. Aargau

16. Fribourg

17. Valais

18. Neuchâtel

19. Zurich

20. Ticino

21. Basel-Stadt

22. Berne

23. Jura

24. Vaud


26. Geneva

Zug

Appenzell

Sarnen

Altdorf

Stans

Schwyz

Herisau

Schaffhausen

Glarus

Lucerne

Chur

Frauenfeld

St Gall

Solothurn

Aarau

Fribourg

Sitten

Neuchâtel

Zurich

Bellinzona

Basel

Berne

Delsberg

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 marginal tax rate of any cantonal capital, the rate in the municipality of Wollerau in the canton of Schwyz is actually slightly lower at 21.90%.

Do your own personal comparison online here.

30.80%Schaffhausen

40.50%Basel-Stadt

41.20%Jura


34.50%Aargau

32.40%Thurgau

33.70%Solothurn

38.10%Neuchâtel

35.50%Fribourg

41.50%Vaud

45.00%Geneva

36.50%Valais

41.20%Berne

31.20%Lucerne

24.30%Obwalden

25.60%Nidwalden

25.30%Uri

31.10%Glarus

26.80%Schwyz

22.20%Zug

40.00%Zurich

33.30%St Gall

32.20%Grisons



40.10%Ticino




© 2021 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 and Leader International Tax Services +41 58 792 44 82 [email protected]

Documents

PwC’s tax comparison 2021