The percentage of economic output demanded by the tax authorities, sometimes referred to as the misery index, is set to fall in 18 of Switzerland’s 26 cantons in 2023, according to data published by the government this week. In 2023, the misery index will fall most in the cantons of Basel-City (-1.9 percentage points), Schaffhausen […]
Swiss cantons to get most of extra company tax money
On 12 January 2022, Switzerland’s Federal Council decided to implement the minimum tax rate for companies that was agreed by the OECD and G20 member states in 2021. The 15% minimum tax, which will be applied to large companies from 1 January 2024, will generate extra tax revenue. This week, after a degree of wrangling, […]
Swiss parliament backs lower tax on menstrual products
Switzerland has two rates of VAT: 2.5% for essential items such as food bought in supermarkets, and 7.7% on all other products. Currently, tampons and sanitary pads are taxed at 7.7%. A parliamentary majority would like to see them taxed at the lower rate of 2.5%. It’s a question of fairness, according to Sophie Michaud […]
Tax burden set to rise in 10 Swiss cantons in 2022
The tax burden is set to rise in 10 Swiss cantons and fall in 16 in 2022, according to data published this week by the Federal Finance Administration (FFA). Nationally, the tax burden in 2022 will represent 24.6% of Switzerland’s tax potential, down from 24.8% in 2021. While the national tax burden percentage offers some […]
The Swiss tax money transfers in 2021
Swiss cantons have very different tax bases, tax rates and costs. To even things up rich cantons are required to help those with less money via a system set up in 2008 known as the péréquation financière nationale (French) or Nationaler Finanzausgleich (German). This week, the government decided on next year’s payments. The system relies on […]
The price of solidarity – Switzerland’s inter-cantonal payments for 2019
In Switzerland, much in life revolves around the canton. Cantons have their own health, social and education systems, parliaments and tax rates. Federal government, based in Bern, is a layer that sits over the top, bringing the cantons together as Switzerland. For some cantons, nationhood has a cost. For others it means extra money. Every […]
Vaud plans tax cuts
Last week, Vaud’s government announced a plan for future tax cuts. The residents of Vaud are among the highest taxed in Switzerland. In 2016, a single person in Lausanne earning CHF 100,000 paid CHF 16,050 in cantonal and communal tax on top of CHF 1,840 of federal tax. This was the fourth highest across all […]
Swiss cantons consider imposing income tax at source
20 Minutes. To reduce the outstanding amount owed by taxpayers, Basel’s parliament is discussing imposing income tax at source. Vaud is considering a similar plan. Every year, the canton Basel-City has to chase around 15,000 outstanding tax bills amounting to a total of CHF 80 million. According to the newspaper NZZ, getting employers to deduct […]
Switzerland’s costliest cantons for tax, housing, health, commuting, and childcare
This week the bank Credit Suisse published its cantonal cost of living report. Its ranking considers a typical household’s biggest expenses: tax, housing, commuting, basic health insurance and childcare. It takes income and deducts all of these costs to arrive at a measure of disposable income. In a simplified world it might be expected that […]
