Switzerland
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 4 | 78.44 |
| Corporate Taxes | 10 | 67.8 |
| Individual Taxes | 15 | 67.55 |
| Consumption Taxes | 1 | 100 |
| Property Taxes | 35 | 36.44 |
| Crossborder Taxes | 2 | 99.03 |
Switzerland ranks 4th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
Strengths
- Switzerland has above-average cost recovery provisions for investments in machinery, buildings, and intangibles.
- Switzerland has a broad tax treaty network, with 93 countries.
- The Swiss VAT of 7.7 percent applies to a broad base and has very low compliance costs.
Weaknesses
- Switzerland has multiple distortionary property taxes with separate levies on real estate transfers, net wealth, estates, assets, and financial transactions.
- Companies are limited in the time period in which they can use net operating losses to offset future profits and are unable to use losses to reduce past taxable income.
- The VAT exemption threshold is almost twice as high as the OECD average.
Learn more about the tax system in Switzerland