Switzerland
Taxation in Switzerland
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Taxation in Switzerland
Switzerland is governed by a federal system and so there are no fixed standard rates for taxation. The federal government allows each canton to impose their own tax levies and therefore tax rates vary in each canton.
Income Tax
Anyone who works in Switzerland is subject to personal income tax on their worldwide income. However, there are double taxation treaties between Switzerland and more than 50 other countries which means that tax paid in one country can be offset against any tax payable in another country.
Personal income tax rates are considerably lower than most EU countries and the rate does not exceed 30%.
Corporate Tax
Corporate income taxes are imposed on profits of companies incorporated in Switzerland or those companies managed from within its regions. Corporate income is between 13% and 22%.
VAT
The VAT rate is 8%.
Social Security
Switzerland has a social security system which covers health insurance, family allowances, pensions, unemployment benefits and accident insurance.Contributions are made by both the employee and the employer, with the exception of health insurance which employers do not contribute to.
Individuals are eligible for social security benefits after making contributions for a minimum of six months.