🇩🇪 Germany vs 🇨🇭 Switzerland
Burden and rates
| Germany | Switzerland | |
|---|---|---|
| Tax-to-GDP (latest) | 39.3% (2022) | 27.2% (2022) |
| Tax-to-GDP in 2000 | 36.4% | 27.0% |
| Headline PIT rate | 45, plus surcharges | Federal: 11.5%. Cantonal and communal PIT rate varies per canton and is added to the federal PIT rate, resulting in an overall PIT max rate between 21.9% and 43.2% at the capital of a specific Swiss canton. |
| Headline CIT rate | Corporate income tax/solidarity surcharge: 15.825%; Trade tax: From 8.75% to 20.3%, depending upon the location of the business establishment. | Federal CIT: 8.5% on profit after tax (7.83% on profit before tax). Cantonal and communal CITs are added to federal CIT, resulting in an overall effective tax rate between 11.66% and 20.54%, depending on the company’s location of corporate residence in Switzerland. |
| Standard VAT rate | 19 | 8.1 |
| Individual CGT | 25, plus 5.5% solidarity surcharge on tax paid (in total 26.375% plus church tax if applicable) | Movable assets: Exempt. Non-movable assets: Exempt for federal tax, and cantonal tax rate varies per canton. |
| Inheritance tax | 50 | Federal: Exempt. Cantonal and communal: - Spouse: Exempt. |
Headline rates as stated by PwC Worldwide Tax Summaries; tax-to-GDP from OECD Revenue Statistics (Global).
Enforcement powers
| Germany | Switzerland | |
|---|---|---|
| Social media & open-web monitoring | Not yet assessed | Not yet assessed |
| AI & machine-learning risk scoring | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). | No — power absent Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). |
| Automated bulk data matching | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
| Digital platform reporting | Yes — statutory power The Platform Tax Transparency Act (PStTG, implementing DAC7) obliges platform operators to report seller information to the German tax authority. | Not yet assessed |
| Crypto-asset reporting | Partial / committed Germany is a signatory to the November 2023 CARF joint statement, committing to crypto-asset reporting with exchanges commencing by 2027 (DAC8 applies EU-wide from 2026). | Partial / committed Listed by the OECD Global Forum as committed to implement the Crypto-Asset Reporting Framework in time for first exchanges by 2027 (list updated 17 June 2025). |
| Exit tax on individuals | Yes — statutory power Germany's Wegzugsbesteuerung (§6 AStG) deems a disposal of substantial shareholdings when unlimited tax liability ends by moving away. | Not yet assessed |
| Citizenship-based taxation | No — power absent Germany taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries). | No — power absent Switzerland taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries). |
| Controlled foreign company (CFC) rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | No — power absent Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Interest limitation rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Country-by-country reporting | Not yet assessed | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0). |
| Public naming of non-compliant taxpayers | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
Statuses: Law = Yes — statutory power · Practice = Yes — documented practice · Partial = Partial / committed · No = No — power absent · No evidence = No evidence found · — = Not yet assessed. Full evidence quotes and sources are on each country page.