3.8 Swiss tax system
Description
This article is from the Switzerland FAQ, by Marc Schaefer schaefer@alphanet.ch with numerous contributions by others.
3.8 Swiss tax system
Switzerland due to its federal nature has a complex tax system, at the
three federal, cantonal and communal levels.
1. Federal income tax, also called ``Direct federal tax'', the same
everywhere.
2. Cantonal income tax (usually lower in industrial/non-rural Cantons)
8-20% of the income.
3. Communal income tax
There is also a value added tax (TVA) at 6.5% (before 1996 it was
called Wust/ICHA at 6.2%, with a different scheme).
Generally, residents of Switzerland have an unlimited tax liability,
viz. they are taxed on worldwide income and wealth. Excluded from
Swiss taxation is immobile property located abroad as long as it is
taxed in the foreign country. Some very wealthy people may ask to be
taxed on spendings rather than fortune or income, but this is rare.
The federal tax authority issues (every year?) a publication outlining
all the different taxes with detailed schedules of rates of the
federation and the cantons.
More information can be obtained at http://www.admin.ch
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