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Contracting News

No changes on Swiss federal income tax for 2013


Swiss taxes are often difficult for residents to understand , this because taxes are levied at federal canton and municipal levels with each of the 26 different cantons having their own separate laws . Our contractors mostly work in the Pharma , Telecoms , Financial Market and , Aviation Industry.

The news for all is Switzerland will not making any changes to the federal income tax brackets for 2013, the real reason for this is that Swiss taxes are linked to the Swiss CPI index (consumer price index) and the federal department of finances is required to adjust income tax levels to match changes in CPI index , this year because of deflation the CPI declined.. This means that federal income taxes are fixed at June 2011 rates until June 2013.

So Swiss taxes vary depending on which of the 26 canton you live in and can also vary depending on which municipality you live in. Local taxes are a multiplier of Income tax . In Zurich the highest marginal income tax rate amounts to 40% for federal cantonal and municipal taxes for residents of the city of Zurich, were as in the canton of Geneva has the highest marginal income tax rate is 51%. For this reason its often difficult to calculate your Tax liabilities before you go until all your details are worked out .

EU nationals going to Switzerland do not need a Visa to enter the country and may stay up to three months of the year , without registering. There is a bilateral agreement system operating between Switzerland and the EU and the system varies depending on your country of origin. EU/EFTA nationals are given priority and there also previsions for family members to accompany the permit holder. The main permit types are a L -Permit , which as a term shorter than 12 months and a B - permit has 12 months or more normally up to five years.

The majority of the problems contractors face , when taking up a contract t in Switzerland can be simplified by using one of our Contractor Management companies.

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