Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 16.12.2005, 16:22
Forum Legend
 
Join Date: May 2005
Location: Luzern currently
Posts: 2,565
Groaned at 3 Times in 3 Posts
Thanked 720 Times in 373 Posts
Richard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond repute
Tax In Switzerland

Just for your information and of course if you have any questions I will provide an answer:

The EU is currently investigating Switzerland for providing state assistance to companies coming to Switzerland. There is a basic EU law which restricts and sometimes prohibits the help a government can give a company. Switzerland has a three tier tax system which allows a Gemeinde and Canton to discount tax for businesses and people for that matter and the Cantons of Schwyz and Zug are famous for doing this. The EU is of the opinion that this systems provides companies moving to Switzerland instead of being domiciled in the EU with an unfair advantage... Switzerland of course disputes this as the bilateral agreement was related to the transfer of people and not of businesses and certainly not a harmonisation of laws and taxes as implied by this EU investigation.

Recently also the Canton Zurich agreed to maintain its Cantonal 100% tax level. This has serious implications for those who will be living in Zurich in 2007 and paying tax there... Any Canton can write a small loss but larger ones based on their GDP are only allowed to occur for two consecutive years. Thereafter the Canton is obliged to bring its tax to a level where it will break even. This is a problem for Canton Zurich as the tax will need to increase by double digit % to say 115% further the Gemeindes will need to increase the tax too and business in Zurich will become less attractive. Now obviously there must be an alternative and this can be for example increasing revenue from some other source (speeding cameras, and parking tickets for example!) or reducing the expenditure (closing schools for example). All in all though 2007 will be a tough year...

Richard
Reply With Quote
  #2  
Old 06.11.2006, 21:49
BeastOfBodmin's Avatar
Forum Veteran
 
Join Date: Oct 2006
Location: Zürich
Posts: 842
Groaned at 3 Times in 2 Posts
Thanked 320 Times in 215 Posts
BeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond repute
Re: Tax In Switzerland

Quote:
Just for your information and of course if you have any questions I will provide an answer:

The EU is currently investigating Switzerland for providing state assistance to companies coming to Switzerland. There is a basic EU law which restricts and sometimes prohibits the help a government can give a company. Switzerland has a three tier tax system which allows a Gemeinde and Canton to discount tax for businesses and people for that matter and the Cantons of Schwyz and Zug are famous for doing this. The EU is of the opinion that this systems provides companies moving to Switzerland instead of being domiciled in the EU with an unfair advantage... Switzerland of course disputes this as the bilateral agreement was related to the transfer of people and not of businesses and certainly not a harmonisation of laws and taxes as implied by this EU investigation.

Recently also the Canton Zurich agreed to maintain its Cantonal 100% tax level. This has serious implications for those who will be living in Zurich in 2007 and paying tax there... Any Canton can write a small loss but larger ones based on their GDP are only allowed to occur for two consecutive years. Thereafter the Canton is obliged to bring its tax to a level where it will break even. This is a problem for Canton Zurich as the tax will need to increase by double digit % to say 115% further the Gemeindes will need to increase the tax too and business in Zurich will become less attractive. Now obviously there must be an alternative and this can be for example increasing revenue from some other source (speeding cameras, and parking tickets for example!) or reducing the expenditure (closing schools for example). All in all though 2007 will be a tough year...

Richard
I tried in vain to find the tax multiplier for Canton Zurich in 2007. Is that information available? I am based in Zurich and about to search for my first apartment. But if I'm going to get a huge tax hit I might decide to go further afield. Are their any reliable estimates for the 2007 rates if there are no hard numbers?
Reply With Quote
  #3  
Old 06.11.2006, 22:10
DC_in_Hombi's Avatar
Senior Member
 
Join Date: Oct 2006
Location: Hombrechtikon
Posts: 302
Groaned at 12 Times in 4 Posts
Thanked 34 Times in 29 Posts
DC_in_Hombi has no particular reputation at present
Re: Tax In Switzerland

From my experience Kanton Zürich has a lower tax band than St Gallen and Kanton Schweiz. Both these Kantons tend have have a lot of Land workers and not high earning Bankers etc.

DC
Reply With Quote
  #4  
Old 07.11.2006, 00:06
Lob's Avatar
Lob Lob is offline
Forum Legend
 
Join Date: Nov 2005
Location: -
Posts: 7,814
Groaned at 45 Times in 40 Posts
Thanked 1,973 Times in 1,060 Posts
Lob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond reputeLob has a reputation beyond repute
Re: Tax In Switzerland

and I keep giving my address as Steuerparadies Schwyz.....

[taxhaven]
Reply With Quote
  #5  
Old 07.11.2006, 07:06
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,724
Groaned at 109 Times in 74 Posts
Thanked 2,349 Times in 1,103 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: Tax In Switzerland

Quote:
From my experience Kanton Zürich has a lower tax band than St Gallen and Kanton Schweiz. Both these Kantons tend have have a lot of Land workers and not high earning Bankers etc.

DC
SZ is around 30-40% lower than ZH.

Just look at the car plates at UBS and CS etc: helluva lot of ZG and SZ to avoid tax...
Reply With Quote
  #6  
Old 07.11.2006, 08:28
Forum Legend
 
Join Date: May 2005
Location: Luzern currently
Posts: 2,565
Groaned at 3 Times in 3 Posts
Thanked 720 Times in 373 Posts
Richard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond reputeRichard has a reputation beyond repute
Re: Tax In Switzerland

Quote:
I tried in vain to find the tax multiplier for Canton Zurich in 2007. Is that information available? I am based in Zurich and about to search for my first apartment. But if I'm going to get a huge tax hit I might decide to go further afield. Are their any reliable estimates for the 2007 rates if there are no hard numbers?
Hi,

As stated there are three components to your tax, the bund or country part, which you cannot alter. The other two are dependent where you live. This therefore means it is not good enough to look for Kanton Zurich you also need to know where. Zurich is one of the cheapest kantons and places like Neerach, Zollikon and Herliberg battle it out every year to be the cheapest. However Kantons Zug and Schwyz are still going to work out cheaper. Pfäffikon or Bäch on Zurisee work out very cheap indeed and you still have a reasonable rail link into Zurich.

If you look on the zurich admin site you will get a list of rates for 2006. The 2007 rates should be published soon as well. This link allows you to calculate it...

http://www.steueramt.zh.ch/cgi-stcalc/StTarifNP99.cgi

For Zug use this link:

http://www.zug.ch/cgi/tax/np/kantordin.cgi

For Schwyz use this link:

http://212.126.164.71/SZ/Kt_SZRVDate.../calc_con.html

Does that Help?!
Reply With Quote
This user would like to thank Richard for this useful post:
  #7  
Old 07.11.2006, 11:12
Forum Veteran
 
Join Date: Mar 2006
Location: Perthia
Posts: 1,237
Groaned at 1 Time in 1 Post
Thanked 905 Times in 446 Posts
Yokine has a reputation beyond reputeYokine has a reputation beyond reputeYokine has a reputation beyond reputeYokine has a reputation beyond reputeYokine has a reputation beyond reputeYokine has a reputation beyond repute
Re: Tax In Switzerland

Quote:
If you look on the zurich admin site you will get a list of rates for 2006. The 2007 rates should be published soon as well. This link allows you to calculate it...
http://www.steueramt.zh.ch/cgi-stcalc/StTarifNP99.cgi
For Zug use this link:
http://www.zug.ch/cgi/tax/np/kantordin.cgi
For Schwyz use this link:
http://212.126.164.71/SZ/Kt_SZRVDate.../calc_con.html
Wow. I hadnt really paid too much attention to the tax structure here. Really thought you had to be in the mega-earner category to justify re-location. But plugging my rough "family" figures in amazed me. Shift from Zurich ZH to Zollikon ZH and save CHF3000, surprising but not really enough to incur the increased living costs. But somewhere like Lachen SZ, save chf10,000 and have those recreational opportunities at my door, tempting. I'd have to change my name to "FayCrish" or something though ;-)
Reply With Quote
  #8  
Old 08.11.2006, 00:13
BeastOfBodmin's Avatar
Forum Veteran
 
Join Date: Oct 2006
Location: Zürich
Posts: 842
Groaned at 3 Times in 2 Posts
Thanked 320 Times in 215 Posts
BeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond reputeBeastOfBodmin has a reputation beyond repute
Re: Tax In Switzerland

Hi,

Quote:
If you look on the zurich admin site you will get a list of rates for 2006. The 2007 rates should be published soon as well. This link allows you to calculate it...

http://www.steueramt.zh.ch/cgi-stcalc/StTarifNP99.cgi

For Zug use this link:

http://www.zug.ch/cgi/tax/np/kantordin.cgi

For Schwyz use this link:

http://212.126.164.71/SZ/Kt_SZRVDate.../calc_con.html

Does that Help?!
It helps. It'd help more if could understand the German .
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT +2. The time now is 12:35.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0