Compared with the EU, the OECD, and the G20 countries, Switzerland remains tax-attractive, particularly with regard to corporate taxation.
Income Tax Rates
Income tax rates for individuals vary considerably between and within the cantons. The Central Swiss cantons (such as Zug, Schwyz, Obwalden, and Nidwalden) as well as the canton of Appenzell Innerrhoden continue to be the most tax-attractive places of residence for private individuals.
With regard to marginal tax rates in the cantonal capitals, the city of Zug leads the ranking with a marginal tax rate of 22.22%, while Geneva ranks last with a tax rate of 45%.
Corporate Tax Rates
Corporate profit tax rates in Switzerland remain highly competitive in international comparison. While the top-ranking canton Zug (with an effective tax rate of below 12%) holds a very strong position both in Europe and worldwide, even Bern, the canton with the highest corporate tax rate in Switzerland, still ranks in the mid-range internationally.
However, the importance of corporate tax rates for large international corporations will likely diminish in the future due to the OECD global minimum tax of 15%.