Tax charge in international comparison
The international comparison of the total tax rate (TTR) shows that Switzerland constantly has a very competitive tax system compared to other highly developed industrial countries. The total tax rate (TTR) measures the amount of all taxes and mandatory contributions borne by the business and is expressed as a percentage of commercial profits. The business report 2009 reflects the TTR for the fiscal years 2006 and 2007 (1 January to 31 December 2006 and 2007). The total amount of taxes borne is the sum of all the different taxes and contributions payable after accounting for deductions and exemptions.
The taxes and contributions included can be divided into the following categories; a) profit or corporate income tax, b) social contributions and labour taxes paid by the employer (for which all mandatory contributions are included, even if paid to a private entity such as a pension fund), c) property taxes, d) turnover taxes (and cascading sales taxes as well as other consumption taxes such as irrecoverable VAT) and e) other taxes (such as municipal fees and vehicle and fuel taxes).
It should further be noted that the Swiss tax system is not only attractive for corporate taxpayers, but also for individual taxpayers as it provides for a modest tax burden in international comparison as well.