With an average tax and contributions rate of 28.8%, the Alpine nation scrapes into the top 20 in a global tax ranking for companies.
The “Paying Taxes 2018 Reportexternal link” produced by PwC and the World Bank Group put Switzerland in 19th spot. Top place was shared by Qatar and the United Arab Emirates, followed by Hong Kong, Ireland and Bahrain. Factors affecting the ranking included the tax rate, time needed to comply with regulations, number of tax payments, and post-filing paperwork.
According to the report, a company in Switzerland pays 28.8% in taxes (global average 40.5%), spends 63 hours (global average 240) filing tax returns and has to make a total of 19 tax payments (global average 24). At the European level, Switzerland’s tax and contributions rate was only beaten by Luxembourg (20.5%), Croatia (20.6%), Cyprus (22.7%), Denmark (24.2%), Ireland (26%) and Bulgaria (27.1%).
“It is true that Switzerland is well positioned in an international context, but it must be careful not to be outdistanced," said Armin Marti, head of corporate taxation at PwC Switzerland.
swissinfo.ch and agencies