Non classé

What Is the Personal Income Tax Rate in Switzerland

Taxable income includes all funds from a person from all sources, in principle without deduction of losses or expenses[13], and including the rental value of a house inhabited by its owner. [14] However, capital gains on private ownership (e.B capital gains on the sale of shares) are exempt from tax, unless the cantons levy a tax on real estate capital gains. [15] Some expenses are also deductible. These include social security or pension fund payments[16], income-generating expenses (such as labor expenses and real estate maintenance costs), and maintenance payments. [17] Gifts and inheritances are also exempt from income tax, but are subject to separate cantonal taxes. [13] An employee`s social security contributions are deductible from gross labour income. Contributions to foreign social security schemes may also be deductible. As a general rule, the employer`s share of social security contributions (including the payment to old-age provision) is not considered taxable income and is therefore exempt from tax for the individual (for more information on the Swiss social security system, see separate publication). In 2011, federal income tax ranged from a range of 1% (for single taxpayers) and 0.77% (for married taxpayers) to a maximum rate of 11.5%. People earning less than 13,600 francs and couples under 27,000 francs were exempt. At the cantonal level, tax rates vary considerably, Obwalden adjusted a flat-rate tax of 1.8% on all personal income after a cantonal referendum in 2007. In most cantons, the rate is proportional to a maximum rate of 6.5% in Bern, while in Zurich it was 13% and in Geneva from 17.58 to 0.76% (depending on taxes as single or spouse).

[19] [20] Economically inactive foreigners residing in Switzerland may pay a flat-rate tax instead of the normal income tax. The tax, which is usually much lower than the normal income tax, is theoretically levied on the taxpayer`s cost of living, but in practice (which varies from canton to canton) it is common to use five times the rent paid by the taxpayer as the basis for flat-rate taxation. [18] This option contributes to Switzerland`s status as a tax haven and has led many wealthy foreigners to live in Switzerland. Accident insurance: Accident insurance is mandatory for every employee. Employees are automatically insured with their employer, while employers are more or less automatically assigned to a specific insurance company, depending on the sector. The risk and costs associated with the respective business activity determine the insurance premiums. A representative course should be estimated. Non-residents are only taxed on income and assets from Switzerland (limited tax liability) if, among other things, we can conclude that the total rate of income tax in Switzerland does not exceed 40%. For example, residents of the canton of Schwyz are subject to a maximum income tax rate of 22% (at federal, cantonal and communal level). Methodological information is available for income tax systems, compulsory social security contributions to schemes operating in the public sector, universal transfers of funds and recent changes in the tax/benefit system. The methodology also includes parameter values and control equations underlying the data. Federal withholding tax (withholding tax / withholding tax / Imposta preventiva) is levied on certain forms of income, in particular on dividend payments, interest on bank loans and bonds, proceeds of liquidation, lottery winnings and payments from life insurance companies and private pension funds.

[35] The debtor of these payments is liable for payment of the tax; You only have to pay the creditor the net amount. [36] The tax rate is 35% for movable income and lottery winnings of CHF 1 million or more, 15% for life annuities and annuities and 8% for other insurance benefits. [37] In addition, there are social security contributions in the Länder. These taxes, which are usually flat-rate, are levied in addition to a country`s general personal income tax on wage income. However, revenue from these taxes is usually used specifically for social security programs such as unemployment insurance, state retirement programs, and health insurance. The income of cohabiting spouses is taxed jointly, regardless of the matrimonial regime under which they married. The income of children living under parental responsibility is added to the income of their guardian. Income from child labour is taxed separately and, in some cases, as in Zurich, is exempt from tax.

The above tax rates apply in principle to taxpayers who file a tax return. The effective cantonal tax on income and wealth is determined by multiplying the property tax by the multiplier applicable to the relevant tax year (calendar year) and then adding the additional wealth tax. Every Swiss citizen is required to perform military service (Art. 59 para. 1 Stst). Anyone who, for any reason (in whole or in part), does not personally comply with this obligation by performing military or civilian service must pay a tax exempting from military service. From the first of January 2016, this notional income, based on the annual cost of living, may not be less than seven times the annual rent paid for the main dwelling occupied by the taxpayer and his family. In the case where the taxpayer owns his own apartment, the notional income may not be less than seven times the presumed rental value of the property. Until the first of January 2016, the minimum annual cost of living is calculated by applying multiplier five instead of seven in multiplication. In practice, it depends: if you rent or own a large property in Switzerland, its rental value will be higher and your total annual tax bill will also be higher. If the authorities do not consider you a resident of Switzerland, you will only pay taxes on your Swiss income.

Real estate transfer tax is levied in Switzerland by the cantons and/or municipalities and is generally the responsibility of the buyer of a property. Property transfer tax is always payable in the canton or municipality concerned when a property changes hands. The tax is levied on the purchase price or on the market value. The exemplary rates of land transfer tax in relation to the value of the property are as follows (please note that for restructurings, transactions between parents, etc. Relief is possible): All persons residing in Switzerland for the taxation of their income and assets worldwide, with the exception of income and assets from transactions or real estate abroad[9] or where tax treaties limit double taxation. .