Taxes in Switzerland
As legal consultants, we get lots of questions about Switzerland’s taxes from some of our audience and clients.
Just like in every other country, all Swiss citizens and residents are liable to vary of taxes. From income tax to wealth and canton taxes, residents of Switzerland are all accountable to a structured taxation system.
Taxes in Switzerland can be very complicated and confusing. If you need help with taxes, we recommend talking to our tax advisors before your arrival.
Tax solutions in Switzerland
The Swiss tax system can be pretty complicated, and the entire registration process is strenuous, especially if you’re new to the country.
We have a team of specialists and advisors that will ensure you have a stress-free process from tax filing and payment procedures whether you’re a student, businessman, tourist, resident, or intern immigrating to Switzerland.
Tax optimization
We have a tax optimization system that is perfect for expats and residents. This system can relax all the burdens and complex procedures why may face when filing or registering as a taxpayer in the country.
Tax consultation
Over the years, our company have become one of the most reliable companies for managing and fixing all tax and financial issues. In addition, we have a team of experts and accountants that will help relieve the burden of making wrong decisions concerning your finances and filing your taxes.
VAT registration
Since Switzerland is not an EU member state, Switzerland sets its VAT rates and does not follow the standard 15% or above standard rate accepted by most European countries.
Every individual or business that sells goods or services must register and charge the appropriate VAT rate per sale. The vat should be collected and sent to the Swiss tax authorities through a VAT filling.
Bookkeeping
Our company can also provide a comprehensive solution to all your accounting operations and financial report. In addition, our Bookkeeping services offer can support companies and individual businesses with complex daily tasks like auditing, budget preparation, financial management, and business analysis.
Applying for tax return
Tax returns are documents that allow individuals, companies, and businesses to estimate their payable levies and schedule payments. It also allows you to request a refund in cases where taxes are overpaid.
Tax returns show the payable taxes from income, wages, and other applicable profits. Applying for Tax returns cannot be easier with our smooth and precise service procedures.
Register as a taxpayer
Expats planning to reside in the Swiss territory permanently are obliged to pay taxes. The tax payable differs from relationship status (Married/single) to the number of children, religion, wealth, income, businesses, and other applicable profits.
System of taxes and fees in Switzerland
Three tiers of government arms impose taxes. There are three different levels of taxes: federal, cantonal, and municipal tax. All three tax rates range from 11.9% to 21.6% in total.
This section of our guide will reveal the government’s rates upon residents and organizations present in the country.
Corporate income tax
Corporate income taxes are monthly levies imposed on the profits of corporations domiciled in the country. The tax rate levied on companies in Switzerland based on profits ranges from 11.5% to 24.4%.
There is no fixed rate because the states and municipalities can set their tax rate. It means your taxes can be 5% higher or 8% lower, depending on where you do business.
Withholding tax
Foreign employees working in the Swiss Territory have their taxes deducted every month by their employers. All employers are responsible for paying the taxes of Non-Swiss employees to the Tax authorities. It is a tariff levied on foreigners or non-Swiss residents.
The rates of Withholding tax are as follows:
- 35% on income from capital and lottery
- 15% is allocated from annuities and pensions
- 8% from insurance benefits
Personal income tax
Personal Income taxes are levied on an individual’s income from different sources, including pensions, employment, interests, investment. The Swiss Personal tax income is around 40%.
Here’s a breakdown of how individual taxes are collected in Switzerland.
Monthly income [CHF] | Rate For Single Residents |
0 – 14,500 | 0% |
14,500 – 31,600 | 0.77% |
31,600 – 41,400 | 0.88% |
41,400 – 55,200 | 2.64% |
55,200 – 72,500 | 2.97% |
72,500 – 103,600 | 5.94% |
103,600 – 134,600 | 6.60% |
134,600 – 176,000 | 8.80% |
176,000 – 755,200 | 11.00% |
Above 755,200 | 11.50% |
Income tax also differs for married taxpayers and single taxpayers with children. Income tax on married or single taxpayers with minor children is listed below.
Monthly income [CHF] | Rate For Married/Single Residents [With Kids] |
0 – 13,500 | 0% |
13,500 – 19, 600 | 2% |
19,600 – 27, 300 | 3% |
27,300 – 36, 700 | 4% |
36,700 – 47,400 | 5% |
47,400 – 61,300 | 6% |
61,300 – 92,100 | 7% |
92,100 – 122,900 | 8% |
122,900 – 169,300 | 9% |
169,300 – 224,700 | 10% |
224,700 – 284,800 | 11% |
284,800 – 354,100 | 12% |
Above 354,100 | 13% |
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Bookkeeping
Update records and accounting ledgers are crucial files required by the Swiss tax authorities to ensure transparency. Our company offers solutions that can ease your burden by providing accurate records for both individuals and businesses.
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