Switzerland

Switzerland's Rankings
CategoryRankScore
Overall Rank579.3
Corporate Taxes870.78
Individual Taxes1077.39
Consumption Taxes1100
Property Taxes3437.61
International Tax Rules1100

Switzerland ranks 5th overall on the 2019 International Tax Competitiveness Index, one place better than in 2018.


Strengths

  • Switzerland has above-average cost recovery provisions for investments in machinery, buildings, and intangibles.
  • Switzerland has a broad tax treaty network, with 93 countries.
  • The Swiss VAT of 7.7 percent applies to a broad base and has very low compliance costs.

Weaknesses

  • Switzerland has multiple distortionary property taxes with separate levies on real estate, net wealth, estates, assets, and financial transactions.
  • Companies are limited in the amount of net operating losses they can use to offset future profits and are unable to use losses to reduce past taxable income.
  • Switzerland has a progressive income tax with a top rate of 41.7 percent, including payroll and personal income taxes.

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