Switzerland Reports Slight Tax Burden Rise In 2010

by Ulrika Lomas, Tax-News.com, Brussels

02 December 2011

Switzerland’s federal administration recently announced a slight increase in the Swiss tax burden in 2010 against the previous year.

According to the federal administration, the tax-to-GDP ratio will probably amount to 29.8% of gross domestic product (GDP) for 2010, marking a rise of just 0.1% compared to 2009.

The administration underscores that the tax burden in Switzerland has been relatively stable since 2009 at just below 30% of GDP.

The administration explains that the slight increase was due to the growth in tax receipts seen by the Swiss cantons and communes and notes that by international standards, Switzerland’s tax-to-GDP ratio remains significantly lower than the Organization for Economic Cooperation and Development’s average of 33.7%.

Only Japan, Ireland, and the United States have lower tax-to-GDP ratios than Switzerland, the administration continues, noting that Denmark and Sweden are, just as in 2009, at the upper end of the scale.

In contrast, as regards social security charges as a percentage of GDP, the administration explains that the ratios declined in the case of the social security funds, as receipts from taxes and duties rose less sharply than GDP in these sectors in 2010.

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