5 ms·

Switzerland is a complex system: instead of 1 high rate tax, you pay many low taxes. So cheating is not worth it individually (too risky/complex for a small sav

Switzerland is a complex system: instead of 1 high rate tax, you pay many low taxes. So cheating is not worth it individually (too risky/complex for a small saving). But the sum is crazy. Exemple of taxes/mandatory ccharges a developper will pay: network tax, photocopy tax, radio tax, VAT, AHV/IV, garbage elimination tax, city tax, state tax, federal tax, healthcare (in some countries it is included in your "federal/state" tax), etc. I just got my "final tax decision"... Switzerland is a fiscal inferno if your income comes from work (vs capital gain)... Usually, I work 6 month per year for taxes. My grand parents were working 1 to 1.5 month in the 60s-70s to pay their taxes also as "independant". Plus with all the crazy fix and variable costs, it is not competitive as an independant or small company. Today, as a "personne morale" (corporation) only complex fiscally optimized structures can get a low tax rate (or as a "physical person" if you are ultra rich (3 comma club) not professionally active in the country you can negotiate a very low rate). PS: also, can we definitively kill the ridiculous myth/reputation of Swiss data protection? (In case of criminal investigation, in many cantons (equivalent to states) a police investigator does not even need a judge warrant to have access to the data)

ElDji 7y ago
> Usually, I work 6 month per year for taxes. Having worked as freelance in switzerland, that sound weird and make me thing : "extraordinary claims require extraordinary evidence"
- IdontRememberIt 7y ago
  Each situation is different and depends on an infinity of parameters (for exemple do not forget that a married couple pays more taxes than two individuals). Income city+state+federal (30%), VAT (7,6%), AHV (11%) + all the rest I have lost count of. For exemple, I pay 2,7% for PCI (Family allowance tax). I have a very good revenue by Swiss standard. Everything from work, nothing from capital gain. - I work in Romandie where personal tax a waaaay higher than in Swiss Germany and I am not in the best city... - I do not count 2nd pilier as it is a "capitalisation" system and not "redistribution" (AHV). But are also mandatory insurances. Also, the revenue you will get at retirement is shrinking (due to life expectancy and negative rates) and is forecasted to even decrease in the future. - Do not forget that Federal tax is not linear... PS: Fun fact. Almost all successful French tennis players have lived in Switzerland a few years because they could negociate their taxes. Roger Federer or Wawrinka who have done a lot for a positive image of Switzerland had to pay full rate... PS2: Company tax system is under total renovation now (because of pressure from Europe). I can imaging that personal tax will follow in the coming decades.
  - kgwgk 7y ago
    > for exemple do not forget that a married couple pays more taxes than two individuals Not necessarily, it depends on details like the canton and the income of each person.
    - IdontRememberIt 7y ago
      This issue may be fixed in the future, but unfortunately still a reality. https://www.efd.admin.ch/efd/de/home/themen/steuern/steuern-national/reform-der-ehe--und-familienbesteuerung/fb-reform_ehe_und_familienbesteuerung.html https://www.efd.admin.ch/efd/de/home/themen/steuern/steuern-...

ElDji 7y ago

> Usually, I work 6 month per year for taxes. Having worked as freelance in switzerland, that sound weird and make me thing : "extraordinary claims require extraordinary evidence"

IdontRememberIt 7y ago
Each situation is different and depends on an infinity of parameters (for exemple do not forget that a married couple pays more taxes than two individuals). Income city+state+federal (30%), VAT (7,6%), AHV (11%) + all the rest I have lost count of. For exemple, I pay 2,7% for PCI (Family allowance tax). I have a very good revenue by Swiss standard. Everything from work, nothing from capital gain. - I work in Romandie where personal tax a waaaay higher than in Swiss Germany and I am not in the best city... - I do not count 2nd pilier as it is a "capitalisation" system and not "redistribution" (AHV). But are also mandatory insurances. Also, the revenue you will get at retirement is shrinking (due to life expectancy and negative rates) and is forecasted to even decrease in the future. - Do not forget that Federal tax is not linear... PS: Fun fact. Almost all successful French tennis players have lived in Switzerland a few years because they could negociate their taxes. Roger Federer or Wawrinka who have done a lot for a positive image of Switzerland had to pay full rate... PS2: Company tax system is under total renovation now (because of pressure from Europe). I can imaging that personal tax will follow in the coming decades.
- kgwgk 7y ago
  > for exemple do not forget that a married couple pays more taxes than two individuals Not necessarily, it depends on details like the canton and the income of each person.
  - IdontRememberIt 7y ago
    This issue may be fixed in the future, but unfortunately still a reality. https://www.efd.admin.ch/efd/de/home/themen/steuern/steuern-national/reform-der-ehe--und-familienbesteuerung/fb-reform_ehe_und_familienbesteuerung.html https://www.efd.admin.ch/efd/de/home/themen/steuern/steuern-...