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Paying Taxes in

Switzerland

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Switzerland to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Pension fund 4 8.25% gross salaries 9.31
Social Security contributions 2 40 5.15% gross salaries 5.81
Corporate income tax 1 15 18.97% taxable profit 4.81
Real estate gains tax 1 46.74% cantonal and 7.83% federal gain 4.46
Mandatory family fund contributions and administrative costs 1 1.2% + 0.5% (admin fee) gross salaries 1.41
Unemployment insurance contributions 0 jointly 1.085% - 1.1% gross salaries 1.22
Transport Taxes 1 various rates type of truck 1.20
Tax on interest 0 35% interest income 0.90 not included
Capital tax 1 0.1721% taxable capital 0.31
Vehicle tax 1 various rates load capacity 0.13
Environmental tax 1 fixed fee and variable amount on weight 0.12
Stamp duty on insurance contracts 1 2.5-5% insurance premium 0.05
Fuel tax 1 CHF 0.759 per liter fuel consumption 0.00 small amount
Value added tax (VAT) 4 8 8% value added 0.00 not included
Totals: 19 63 28.8
  • Answer
    Profit tax (% of profit) 9.3
    Labor tax and contributions (% of profit) 17.7
    Other taxes (% of profit) 1.8
    Answer Score
    Postfiling index (0-100) 86.6
    VAT refunds 97.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission quarterly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Unlikely
    Time to comply with VAT refund (hours) 1.5 97.0
    Time to obtain a VAT refund (weeks) 14.5 78.2
    Corporate income tax audits 85.3
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 9.5 85.3
    Time to complete a corporate income tax audit (weeks) 4.6 85.7
    Administrative appeal process
    First level administrative appeal authority Cantonal Tax Authority
    Is the appeal authority independent? Same Auditor
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.