Clarity on Swiss TaxesCorporate tax rates have fallen particularly noticeably in Lucerne, Appenzell A., Neuchâtel, Schaffhausen and Grisons, with a rate of 12% emerging in practice

Clarity onSwiss TaxesBeyond limits

16

Individual taxation

4

Corporate taxation

Swiss tax landscape

E D ITO R I A L

As reform dominates tax agendas worldwide, Switzerland remains competitive on the global tax stage according to KPMG’s “Swiss Tax Report 2018”. This annual study compares corporate and individual tax rates at the national and international level, analyzing data to draw conclusions on the latest developments.

Regulatory change is under way in many tax jurisdictions. KPMG’s Swiss Tax Report 2018 reflects the fact that it usually takes time for the full effects to unfold. Shifts can also be abrupt, however. Perhaps the highest profile example is the recent US tax reform, with its far-reaching implications for individual and corporate taxpayers. So far, initial speculation that the move could trigger a new “race to the bottom” for competitive tax rates among Swiss cantons appears unfounded. Indeed, KPMG’s report shows that natural – viable – tax rate limits have been reached in many cases, and Switzerland’s own Tax Proposal 17 safeguards stability for the foreseeable future.

Supranational regulations, such as BEPS and ATAD II, or even transnational agreements are also increasingly part of the global tax landscape. Ongoing global shifts have become the norm overall. In addition, digital megatrends are gathering speed, ready to drive the next phase of the tax landscape evolution. What will this mean for Switzerland?

KPMG’s tax experts are observing regulatory and technological developments, ready to analyze the impact for our clients. Please contact us for personal insights and advice on any tax matter.

Peter Uebelhart

Peter UebelhartHead of Tax, KPMG Switzerland

Welcome

Individual taxation

Clarity on Swiss Taxes

3

Corporate taxation

S W I S S TA X R E P O RT 2 018

Corporate income tax

Switzerland remains attractive against the global and international tax competition. Cantons of central and eastern Switzerland stand out once again as having particularly low tax rates. Several tax reforms around the world – most recently in the US – are driving the ongoing trend toward lower corporate income tax. Successive cuts are also planned in parts of Europe in the coming years, including France and the UK. Tax rates are also expected to fall in Switzerland, especially in connection with the Tax Proposal 17.

4


5

0.18%

100 - 1000

C O R P O R AT E TA X AT I O N : C O R P O R AT E I N C O M E TA X

Contribution of businesses to tax revenues from direct federal taxes

(by profit levels)

67.04%

13.62%

5.60%

9.68%10.81%

87.76%

1.11% 1.28%2.93%

0 - 10 10 - 50 50 - 100 1000+

Taxpayers

Contribution to direct federal taxes

Taxable profit in CHF 1,000/year

1 According to the FTA – Note: latest available data for the tax period 2014. Source: Federal Tax Administration FTA, 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/dbst-jp-kantone-2014.html.

While over two-thirds of taxable companies pay virtually no tax, 2.93% carry almost 90% of the total direct (federal) tax burden. Companies in privileged tax regimes account for 46.5% (around CHF 4.3 billion) of direct federal taxes paid 1.

Which businesses are shouldering the tax burden in Switzerland?

6

20.6620.53Jura

16.1216.12Grisons

14.9214.92Uri

12.3212.32

12.6612.66

12.7412.74

13.0413.04

14.1614.16

14.6014.51

15.2715.19

15.6115.61

15.7015.70

15.9715.75

16.4316.43

17.4017.40

18.6118.61

19.8619.86

20.6720.55

20.7020.70

21.1521.15

21.4921.38

21.6421.64

21.7421.74

21.3721.37

22.1822.18

24.1624.16

2017

2018

Corporate income tax rates in the cantons – 2017 and 2018 The cantons of central Switzerland once again top the table for the lowest ordinary corporate income tax rates. These cantons also showed little movement in terms of tax rates, with Zug, Schwyz and Schaffhausen the only ones to adjust their rates slightly downward. The bottom of the league is dominated by western Switzerland, the Mittelland region and the city cantons. Jura, Ticino and Solothurn were the only ones to cut rates, and even then only very slightly. However, further cuts – especially in the higher tax cantons – are expected in connection with the pending Tax Proposal 17.

Note: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for AI, BL, BE, GE, GL, GR, JU and NE for 2017. Source: KPMG Switzerland.

Nidwalden

Lucerne

Obwalden

Appenzell A.

Appenzell I.

Zug

Schwyz

Glarus

Neuchâtel

Schaffhausen

Thurgau

St. Gallen

Aargau

Fribourg

Ticino

Basel-Landschaft

Zurich

Solothurn

Bern

Valais

Vaud

Basel-Stadt

Geneva

Figures in percent


7

22.76 21.38

21.57 21.74

23.53 21.37

17.27 12.66

Vaud - 2.16

21.12 20.53Jura - 0.59

16.98 16.43Thurgau

Corporate income tax rates in the cantons – trend 2007 vs. 2018 Corporate tax rates have fallen particularly noticeably in Lucerne, Appenzell A., Neuchâtel, Schaffhausen and Grisons, with a rate of 12% emerging in practice as the lowest limit. Only very small changes in ordinary corporate tax rates can be observed in the Mittelland region, western Switzerland and the city cantons. Within this group, Basel-Landschaft was the only canton to significantly cut the rate, while Valais actually increased its rate marginally.

- 0.55

18.90 12.32

13.12 12.74 18.04 13.04 15.47 14.16 16.10 14.51 16.32 14.92 19.76 15.19 22.18 15.61 19.98 15.70 22.84 15.75 29.06 16.12

19.08 17.40 22.32 18.61 21.95 19.86

22.00 20.55 25.65 20.70 21.32 21.15

23.40 21.64

24.81 22.18 24.24 24.16

Lucerne

Nidwalden

Obwalden

Appenzell A.

Appenzell I.

Zug

Uri

Schwyz

Neuchâtel

Glarus

Schaffhausen

Grisons

St. Gallen

Aargau

Fribourg

Ticino

Basel-Landschaft

Zurich

Solothurn

Bern

Valais

Basel-Stadt

Geneva

- 6.58

- 4.61

- 0.38

- 5.00

- 1.31

- 1.59

- 1.40

- 4.57

- 6.57

- 4.28

- 7.09

- 1.68

- 3.71

- 2.09

- 1.45

- 4.95

- 0.17

-1.38

-1.76

+0.17

- 2.63

- 0.08


- 12.94

2007

2018

Figures in percent


8

17.74% 17.71%

Genf

Basel-Stadt

Bern

Waadt

Zürich

Aargau

CH-Durchschnitt

St. Gallen

Graubünden

Schaffhausen

Neuenburg

Schwyz

Zug

Obwalden

Nidwalden

Luzern

19.44%20.76%

18.70%18.96%18.06%18.31% 17.90%18.01% 17.80%17.89%

2007


2008 2009 2010 2011 2012 2013 2014 2015 2016

– 3.05%

Corporate income tax rates in the cantons – trend 2007 to 2018 Average income tax rates continue to fall marginally.

Corporate income tax rates in the cantons – trend 2007 to 2018 Corporate income tax rates continue to stagnate, with Schwyz, Zug and Schaffhausen alone in reducing rates slightly.

30%

28%

26%

24%

22%

20%

18%

16%

14%

12%

Geneva

Vaud

Basel-StadtBern

Zurich

Aargau

Swiss averageSt. Gallen

GrisonsSchaffhausen

SchwyzZug

NidwaldenLucerne

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


Neuchâtel

2017

2017

2018

Obwalden

2018


9

Corporate income tax rates in the cantons in 2018

20.5Jura

19.9Fribourg

21.7Valais

21.6Bern

21.4Solothurn

21.4Vaud

20.7Basel-Landschaft

18.6Aargau

22.2Basel-Stadt

12.3Lucerne

12.7Obwalden

15.6Neuchâtel

24.2Geneva

Cantons with a corporate income tax rate below the Swiss average (17.71%)

Figures in percent

Cantons with a corporate income tax rate above the Swiss average (17.71%)



10

18.6Aargau 21.2

Zurich

15.8Schaffhausen

16.4Thurgau

13.0Appenzell A.

14.2Appenzell I.

12.3Lucerne

12.7Nidwalden

14.9Uri 16.1

Grisons

17.4St. Gallen

15.7Glarus

15.2Schwyz

14.5Zug

20.6Ticino


11

15.27 | 15.19

- 0.22

16.12

16.43

16.00

15.97 | 15.75

15.70

14.92

15.00

15.00

15.00

18.61

15.61

18.00

The cantons compared with European countries The comparison with Europe shows hardly any change in the lower tax rates, with the cantons of central Switzerland enjoying a particularly good position. The Channel Islands and certain (south) eastern European states are the only locations to offer even lower ordinary corporate income tax rates. Ireland remains Switzerland’s main competitor in Europe. There is little change in Europe’s center field apart from Croatia and a few Swiss cantons, which lowered their income tax rates.

17.40

14.60 | 14.51

14.16

12.66

12.50

12.50

12.50

12.32

20.00 | 18.00

10.00

9.00

12.74

+/– 0

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Albania, AI, GL, GR and NE for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.


13.04

- 0.09

Schaffhausen

Romania

Glarus

Thurgau

Grisons

Albania

Serbia

Lithuania

Uri

Ukraine

Neuchâtel

Guernsey

Montenegro

Hungary

Bulgaria

Croatia

Lucerne

Ireland

Liechtenstein

Cyprus

Nidwalden

Obwalden

Appenzell I.

Schwyz

Zug

St. Gallen

Aargau

Appenzell A.

Jura

9.00

19.00Poland

- 0.08

- 2.00

12

19.00

19.00Slovenia

UK

19.86

21.37

29.00

24.00 | 23.00

22.18

21.64

20.70

20.67 | 20.55

20.00 | 22.00

21.00

24.16

35.00

33.33 | 33.00

24.00

25.00

29.79 | 30.00

27.08 | 26.01

25.00

25.00

22.00

22.00

21.49 | 21.38

21.74

21.15

20.66 | 20.53

20.00

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for BE, BL, GE and JU for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.

Greece

Norway

Basel-Stadt

Bern

Geneva

Fribourg

Basel-Landschaft

Slovakia

Turkey

Ticino

Zurich

Valais

Solothurn

Sweden

Vaud

Jura

Estonia

Denmark

The Netherlands

Austria

Luxembourg

Germany

Spain

Italy

France

Malta

- 0.11

- 1.00

- 1.07

+ 0.21

2018

+/- compared with previous year

Figures in percent

The countries of central Europe bring up the rear in the attractiveness rankings for ordinary corporate tax rates. Norway and Luxembourg reduced their rates once again in 2018 and France is planning successive cuts to bring its rate down to 25% by 2022. Turkey and Germany bucked the trend by increasing their rates.

- 0.13

- 0.12

+ 2.00

- 0.33


13

40.00 | 27.00USA - 13.00

30.86

34.61 | 35.00

34.00

30.00

28.00

26.50

Japan

India

Canada

South Africa

Australia

Brazil

17.00 26.00+ 9.00

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Bahamas, Bermuda, Cayman Islands, Dubai, Russia and UAE for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.

Global comparison (selected countries) Despite massive tax cuts in the US, the famous offshore domiciles plus Hong Kong and Singapore remain the clear leaders in terms of tax appeal. In a global comparison, Switzerland retains its place in the top third.

25.00

25.00

24.00

20.00

17.74 | 17.71

17.00

16.50

10.00

25.00

0.00

0.00

0.00

0.00

0.00

- 0.03

Trend: countries 2007 – 2018Only a few countries have actually increased their corporate income tax rates since 2007.

28.00 30.00 18.00 20.00

25.00 29.00

19.00 21.00

+ 2.00

+ 2.00

+ 4.00

+ 2.00

Maximum corporate income tax rates, Source: KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.

2007

2018

Figures in percent


Chile

Bahamas

Bahrain

Bermuda

Cayman Islands

Dubai

Qatar

Hong Kong

Singapore

Swiss average

Russia

Malaysia

China

Indonesia

Panama

Mexico

Iceland

Greece

Slovakia

2018


Figures in percent

+0.39

55.00UAE

14

27.00 24.00 20.00 17.00

- 3.00

- 3.00

Malaysia

Singapore

17.50 16.50

29.63 26.01

- 1.00

- 3.62

33.00 25.00- 8.00

- 6.00

38.36 30.00- 8.36

24.00 20.00- 4.00

16.00 9.00- 7.00

40.69 30.86- 9.83

25.00 20.00- 5.00

Trend: countries 2007 – 2018In recent years, corporate income taxes have seen huge reductions, especially in the Middle East and – currently – in the US. The UK and France have also already announced a larger cut.

55.00 15.00 35.00 10.00 35.00 10.00 37.25 24.00

28.00 22.00

25.50 25.00

20.76 17.71

- 40.00

- 25.00

- 25.00

- 13.25

30.00 19.00- 11.00

- 0.50

- 3.05

2007

2018

Figures in percent

Hong Kong

Luxembourg

China

Sweden

Germany

Russia

Hungary

Japan

Jordan

Kuwait

Gibraltar

Qatar

Italy

The Netherlands

Swiss average

27.50 25.00- 2.50South Korea

UK

Maximum corporate income tax rates, CH: max. effective rate on pre-tax profits for federal/cantonal/municipal taxes in the respective cantonal capital. Corporate income tax figures for Gibraltar and Russia for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html.

40.00 27.00- 13.00USA

33.33 33.00- 0.33France


15

Individual taxationIncome tax

Income tax rates have not seen any major changes in the past year in Switzerland or internationally. The general downward trend in individual tax rates appears to be tailing off. Switzerland remains a highly attractive location not just for businesses, but also for individuals.

S W I S S TA X R E P O RT 2 018

16


17

53.06%

I N D I V I D UA L TA X AT I O N : I N C O M E TA X

2.63%

35.04%

7.00%

26.19%

8.24%

15.69%16.29%

15.14%

12.78%

4.31%

0 - 50 50 - 75

Taxpayers

Contribution to direct federal taxes

Taxable income in CHF 1,000 / year

Note: latest available data for the tax period 2014. Source: Federal Tax Administration FTA , 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer/np_kanton_dbs_2014.html.

3.63%

75 - 100 100 - 150 150 - 200 200+

Contribution of individuals to tax revenues from direct federal taxes

(by income bracket)

In Switzerland, 3.63% of taxpayers, i.e. those with the highest income, pay more than 50% of direct federal taxes from natural persons.

Who shoulders the tax burden in Switzerland?

18

42.74

4.85

6.95

Contribution of individuals to tax revenues from direct federal taxes

(by income bracket)

0.00

79.45

Percentage share of taxpayers in direct federal taxes

Note: latest available data for the tax period 2014, including persons taxed on a lump-sum basis and taxpayers where income taken into account in determining the tax rate is different from the taxable income. Source: Federal Tax Administration FTA, 2018: https://www.estv.admin.ch/estv/de/home/allgemein/steuerstatistiken/fachinformationen/steuerstatistiken/direkte-bundessteuer.html.

0.16 0.36 0.65 1.03 1.752.71

4.48

9.41

10.30

3.62

6.90

10 200 30 40 50 60 70 80 90

99 - 100

98 - 99

97 - 98

96 - 97

95 - 96

90 - 95

11.04

100

Figures in percent

The 10% of taxpayers with the highest income shoulder the burden for 80% of direct federal taxes, while the top 1% in terms of income account for 42.74% (prior year 41.3%).


19

31.1631.17Lucerne

40.4640.46

25.5525.55

24.8624.86

22.8622.86

24.3024.30

25.3525.35

28.2128.21

30.4830.48

31.5631.56

32.1832.18

32.4832.48

32.2932.29

33.5233.52

34.0534.05

34.1834.18

36.0236.02

36.5036.50

37.4337.43

39.3339.33

39.7639.76

40.7240.72

41.2741.27

41.5041.50

42.1742.17

44.7544.75

2017

2018

Income tax rates in the cantons – 2017 and 2018The cantons of central Switzerland also lead the tax league for individual taxation. The bottom of the ranking is dominated by the cantons of western Switzerland and the Mittelland region. Elsewhere there was no movement in tax rates, apart from in Lucerne.

Note: max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Source: KPMG Switzerland.

Figures in percent


Jura

Obwalden

Zug

Appenzell I.

Nidwalden

Uri

Schwyz

Appenzell A.

Glarus

Grisons

Thurgau

Schaffhausen

St. Gallen

Aargau

Solothurn

Fribourg

Valais

Basel-Stadt

Zurich

Neuchâtel

Ticino

Bern

Vaud

Basel-Landschaft

Geneva

20

33.96%34.61%34.85%

34.05%34.25% 33.76%33.84% 33.86%33.77% 33.99%33.98%

2007


2008 2009 2010 2011 2012 2013 2014 2015 2016

– 0.89%

Income tax rates in the cantons – trend 2007 to 2018After a modest slide in recent years, the average maximum tax rates appear to have stabilized.

2017

33.96%

2018


21

32.5531.17Lucerne

25.2032.29Schaffhausen

41.0240.72

26.1424.86

23.1022.86

24.0124.30

26.7425.55

33.0025.35

25.1928.21

31.2630.48

34.4931.56

32.9532.18

35.6332.48

36.1633.52

36.8434.05

36.4734.18

36.3336.02

37.0036.50

38.9137.43

39.3439.33

40.1639.76

43.5440.46

41.2841.27

41.5041.50

42.5542.17

44.7644.75



2007

2018

Figures in percent

Income tax rates in the cantons – trend 2007 to 2018The cantons of central Switzerland have occupied the top spots in the tax ranking for over a decade. Apart from Uri, tax rate reductions were only marginal. Obwalden, Schwyz and Schaffhausen were the only cantons to increase their tax rates, while Aargau, Solothurn and Jura saw the most significant rate cuts. Neuchâtel, Bern, Vaud and Geneva have maintained the same rates for over 10 years.

Ticino

Appenzell I.

Obwalden

Zug

Nidwalden

Uri

Schwyz

Appenzell A.

Grisons

Glarus

Thurgau

St. Gallen

Aargau

Solothurn

Fribourg

Valais

Basel-Stadt

Zurich

Neuchâtel

Jura

Bern

Vaud

Basel-Landschaft

Geneva

22

Income tax rates in the cantons – trend 2007 to 2018The majority of top tax rates saw marginal variations in recent years. Alongside significant cuts in Aargau, Thurgau and St. Gallen, increases were notable in Schaffhausen and Schwyz.

Genf

Waadt

Bern

Zürich

Neuenburg

Basel-Stadt

Aargau

CH-DurchschnittSt. Gallen

Thurgau

Schaffhausen

Luzern

Schwyz

Nidwalden

Obwalden

Zug

46%

44%

42%

40%

38%

36%

34%

32%

30%

28%

26%

24%

22%

20%


2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geneva

Vaud

Basel-Stadt

Bern

Zurich

AargauSwiss averageSt. Gallen

Schwyz

Zug

Obwalden

Thurgau

Nidwalden

Neuchâtel

LucerneSchaffhausen

2018


23

Individual income tax rates in the cantons in 2018

40.5Jura

36.5Valais

41.3Bern

34.2Solothurn

41.5Vaud

42.2Basel-Landschaft

34.1 Aargau

37.4Basel-Stadt

31.2 Lucerne

24.3Obwalden

44.8 Geneva

Cantons with an individual income tax rate below the Swiss average (33.96%)

Figures in percent

Cantons with an individual income tax rate above the Swiss average (33.96%)



39.3Neuchâtel

36.0Fribourg

24

34.1 Aargau

31.2 Lucerne

39.8Zürich

32.3 Schaffhausen

32.5 Thurgau

30.5 Appenzell A.

24.9 Appenzell I.

25.6 Nidwalden

25.4 Uri 32.2

Grisons

33.5St. Gallen

31.6 Glarus

28.2 Schwyz

22.9 Zug

40.7Ticino


25

31.16 | 31.17Lucerne

30.48

24.86

28.21

25.35

25.55

24.30

Appenzell A.

Appenzell I.

Obwalden

Nidwalden

Uri

Schwyz

31.56Glarus

22.86

35.00

35.00

34.18

34.05

33.52

32.48

32.29

32.18

32.00

20.00

The cantons compared with European countries The tax payable on top incomes remains particularly low in the countries of (south) eastern Europe (partly due to flat rate systems). Latvia ended its flat rate tax system in 2018 and increased its tax rates – massively in some income brackets. Most of the Swiss cantons compare to the European average when it comes to top income tax rates.

23.00 | 31.40

22.00

20.00

18.00

15.00

15.00

10.00

+ 0.01

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Jersey: income tax rate for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.


Luxemburg

The Netherlands

Finland

Cyprus

Poland

Grisons

Schaffhausen

Thurgau

Aargau

Solothurn

Turkey

St. Gallen

Estonia

Bulgaria

Lithuania

Hungary

Ukraine

Jersey

Czech Republic

Zug

Latvia

36.02Fribourg

+ 8.40

26

48.00

46.72 | 46.60

46.24Iceland

Norway

Portugal

48.00Ireland

54.00 | 53.75

52.00 | 51.95

50.00

50.00

48.78 | 45.78

40.72

61.85 | 57.34

55.00

45.00

45.00

45.00

44.75

43.00

42.17

41.50

41.27

40.46

39.76

39.33

37.43

36.50 2018


Figures in percent

45.00

55.79 | 55.85

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective cantonal capital. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.

- 3.00

+ 0.06

Luxemburg

Belgium

Slovenia

The Netherlands

Finland

Ticino

Valais

Basel-Stadt

Neuchâtel

Zurich

Jura

Bern

Vaud

Basel-Landschaft

Italy

Geneva

Germany

UK

Spain

Austria

Denmark

Sweden

Greece

- 0.12

- 0.25

- 4.51

- 0.05

Individual income tax rates are especially high in western Europe and Scandinavia. Following significant increases in 2017, Luxembourg and Sweden cut their tax rates back down in 2018. Norway, Finland and the Netherlands also reduced their tax rates slightly once again. On average, tax rates across Europe have been stagnating in recent years, however.


27

45.00 45.00Australia

28.00 28.00

15.00 15.00

Global comparison (selected countries)While income tax increases remain off the table in the well-known offshore domiciles as well as several states in the Middle East, countries like South Africa, Australia, China or Japan have very high tax rates by global standards. The US also cut tax rates for natural persons this year, albeit less extensively than for companies.

0.00

13.00 13.00

20.00 20.00

27.50 27.50

30.00 30.00 33.00 33.00 33.96 33.96 35.54 35.88 39.60 37.00

45.00 45.00

45.00 45.00

55.95 55.95

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Bahrain and Qatar: income tax rates for 2017. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.

22.00 22.00

2017

2018

Figures in percent 0.00

0.00

0.00

0.00

0.00

0.00


Malaysia

Hong Kong

Bahamas

Bahrain

Bermuda

Cayman Islands

Oman

Qatar

UAE

Russia

Jordan

Brazil

Indonesia

New Zealand

Swiss average

India

USA

South Africa

China

Japan

Singapore

28

39.00 45.78+ 6.78Luxembourg

30.00 35.00+ 5.00

43.00 45.00+ 2.00

Cyprus

Spain

25.00 31.40+ 6.40Latvia

45.00 36.00- 9.00Croatia

16.00 15.00-1.00Hong Kong

24.00 10.00- 14.00Bulgaria

40.00 45.00+ 5.00

40.00 45.00

18.00 20.00

45.00 45.00

35.00 37.00

41.00 48.00

+ 5.00

+ 2.00

0.00

+ 2.00

+ 7.00

- 0.89 34.85 33.96

25.00 20.00- 5.00

Trend: countries 2007 – 2018Following the introduction of flat rate taxes, the income tax rates for the highest earners have fallen massively in central Europe over the past years. Rising top income tax rates can be observed in western and southeast Europe in particular.

36.00 15.00

27.00 15.00 32.00 22.00

40.00 32.00

59.00 55.85

28.00 28.00

35.70 46.24

- 21.00

- 12.00

- 10.00

- 8.00

- 3.15

0.00

+ 10.54

Max. income tax rates for single taxpayers with no children and no religious denomination living in the respective capital. Sources: KPMG Switzerland, KPMG International: https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/individual-income-tax-rates-table.html.

2007

2018

Figures in percent

Greece

UK

Isle of Man

Germany

USA

Ireland

Swiss average

Jordan

Hungary

Lithuania

Czech Republic

Poland

Denmark

Malaysia

Iceland


29

Clarity on Mergers & Acquisitions

Clarity on Healthcare

Annual Report KPMG Switzerland 2017

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“Clarity on” publications This series of publications from KPMG Switzerland provides insights, analyses and studies on a range of topics. All publications are available online. For more information, please contact [email protected].

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P I N B OA R D

30

Clarity onInsurance DigitalizationAchieving agility: Towards a new business model

June 2017

4Seizing the opportunity Time to face the digital reality

12Interviews Gert De Winter and Adrian Honegger, Baloise Group Philomena Colatrella, CSS Francis Blumberg, Swiss Re

24Hot topics Digital labor, future customer, claims management, data and governance

Clarity on Performance of Swiss Private Banks

Clarity onPerformance of Swiss Private BanksSome limited change.Not radical enough.

September 2017

20Profitability Low levels of RoE mean shareholder value at most banks is being diluted.

28Growth AuM for the Swiss private banking industry has remained flat for six years.

36Cost efficiency Median cost-income ratio rises to its highest level for seven years.

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Institute of Management

142017 activity and 2018 outlook Take an industry-by-industry look at past deals and what to expect over the next 12 months.

18Swiss deals in 2017 View the M&A transactions that involved a Swiss buyer, seller or target.

22Appetite for change Migros and Farmy share how changing consumer trends are shaping corporate development.

Clarity onMergers & AcquisitionsThe growing appetite of Swiss dealmakers

January 2018

Clarity onHealthcare

September 2017

10Digitalisierung ist ein kultureller Prozess Stephan Sigrist, Gründer und Leiter Think Tank W.I.R.E., im Gespräch mit Michael Herzog

18Potenziale für das Schweizer Gesundheitswesen Einsparungen von CHF 300 Mio.

38So finden Sie den richtigen IT-Provider für Ihre Plattform Elektronisches Patientendossier

Digitalisierung: Wo liegen die Potenziale für das Gesundheitswesen?

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Jahresbericht 2017

Clarity on Dynamic Audit

How technology reshapes the audit and delivers more value

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Clarity onDigitalLaborRise of the robots

October 2017

14Digital labor demystified

32Why is digital labor becoming important now

46Ready to gain from digital labor

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PERFORMANCE

For further information on Clarity on Swiss Taxes

Please contact:

Peter Uebelhart Head of Tax and Member of the Executive Committee+41 58 249 42 [email protected]

Your local contacts for tax matters:

Zurich / Ticino Stefan KuhnPartner+41 58 249 54 [email protected]

Mittelland Hans Jürg SteinerPartner+41 58 249 20 [email protected]

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Documents

Clarity on Swiss TaxesCorporate tax rates have fallen particularly noticeably in Lucerne, Appenzell A., Neuchâtel, Schaffhausen and Grisons, with a rate of 12% emerging in practice