Other more traditional taxes include :
Federal Value added tax
The value added tax (VAT) is one of the Confederation's principal sources of funding. It is levied at a rate of 8 percent on most commercial exchanges of goods and services. Other items such as food, drugs, books and newspapers, are subject to a reduced VAT of 2.5 percent. Medical, educational and cultural services, are tax-exempt; as are goods delivered and services provided abroad.
Federal withholding tax
The federal withholding tax is levied at a rate of 35 percent on certain forms of income, mostly dividend payments, interest on bank loans and bonds, liquidation proceeds, lottery prizes and payments by life insurances and private pension funds.
Stamp duties
Stamp duties are …show more content…
Additional federal taxes of lesser economic importance include taxes on the importation or manufacture of spirits, beer, tobacco, automobiles and mineral oil, as well as on gambling establishments. Citizens exempt from military service are required to pay a tax in compensation
Other cantonal taxes
In addition to the taxes mentioned above, the cantons are free to introduce others. Several cantons levy an inheritance tax and a gift tax, although there is a trend towards abolishing these. Moreover, the cantons are required by federal law to levy a tax on the profit from the sale of real estate. Most also levy a tax on the value of the property sold so as to discourage speculation in real estate. Taxes are also frequently levied on the ownership of dogs and motor vehicles, on lotteries, on the sale of tickets to public entertainments, or on overnight stays in certain tourist destinations.
Tax-related criminal law
It is a criminal offence under cantonal and federal law to wilfully cause one's taxes to be incompletely assessed. The statutes distinguish, however, between tax evasion and tax …show more content…
It is classed as a crime and is punishable by imprisonment of up to three years or an additional fine of up to 30,000 CHF.
This distinction is of particular importance with respect to the level of international judicial assistance given by Swiss authorities to foreign states that prosecute their own citizens for tax evasions committed in Switzerland, such as by depositing undeclared income with a Swiss bank. Up until recently, Swiss law prohibited all support to foreign jurisdictions for the prosecution of fiscal offences, except to the U.S. under the terms of a 1973 agreement.
Since 1983, enforcement assistance is provided (such as the search and seizure of accounts and documents) for the prosecution of fiscal crimes (notably, tax fraud) but not for the prosecution of fiscal errors (notably, tax evasion). Under pressure from the G20 and the OECD, the Swiss government announced in March 2009 that it will abolish the distinction between tax fraud and tax evasion in dealings with foreign clients. The Swiss authorities will from now on also provide judicial assistance in the event of tax evasion by a foreign client. The distinction however remains valid for domestic
Federal Value added tax
The value added tax (VAT) is one of the Confederation's principal sources of funding. It is levied at a rate of 8 percent on most commercial exchanges of goods and services. Other items such as food, drugs, books and newspapers, are subject to a reduced VAT of 2.5 percent. Medical, educational and cultural services, are tax-exempt; as are goods delivered and services provided abroad.
Federal withholding tax
The federal withholding tax is levied at a rate of 35 percent on certain forms of income, mostly dividend payments, interest on bank loans and bonds, liquidation proceeds, lottery prizes and payments by life insurances and private pension funds.
Stamp duties
Stamp duties are …show more content…
Additional federal taxes of lesser economic importance include taxes on the importation or manufacture of spirits, beer, tobacco, automobiles and mineral oil, as well as on gambling establishments. Citizens exempt from military service are required to pay a tax in compensation
Other cantonal taxes
In addition to the taxes mentioned above, the cantons are free to introduce others. Several cantons levy an inheritance tax and a gift tax, although there is a trend towards abolishing these. Moreover, the cantons are required by federal law to levy a tax on the profit from the sale of real estate. Most also levy a tax on the value of the property sold so as to discourage speculation in real estate. Taxes are also frequently levied on the ownership of dogs and motor vehicles, on lotteries, on the sale of tickets to public entertainments, or on overnight stays in certain tourist destinations.
Tax-related criminal law
It is a criminal offence under cantonal and federal law to wilfully cause one's taxes to be incompletely assessed. The statutes distinguish, however, between tax evasion and tax …show more content…
It is classed as a crime and is punishable by imprisonment of up to three years or an additional fine of up to 30,000 CHF.
This distinction is of particular importance with respect to the level of international judicial assistance given by Swiss authorities to foreign states that prosecute their own citizens for tax evasions committed in Switzerland, such as by depositing undeclared income with a Swiss bank. Up until recently, Swiss law prohibited all support to foreign jurisdictions for the prosecution of fiscal offences, except to the U.S. under the terms of a 1973 agreement.
Since 1983, enforcement assistance is provided (such as the search and seizure of accounts and documents) for the prosecution of fiscal crimes (notably, tax fraud) but not for the prosecution of fiscal errors (notably, tax evasion). Under pressure from the G20 and the OECD, the Swiss government announced in March 2009 that it will abolish the distinction between tax fraud and tax evasion in dealings with foreign clients. The Swiss authorities will from now on also provide judicial assistance in the event of tax evasion by a foreign client. The distinction however remains valid for domestic