🇩🇪 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 | Partial / committed The Federal Central Tax Office describes an internet crawler, Xpider, that searches for persons and businesses offering goods and services online and reports finds to the Länder tax authorities. The tool dates from 2003 and the page carries no freshness date; the most recent independent corroboration of active use is from 2020, so continued operation is not confirmed. Open-web monitoring of commercial activity; no source establishes monitoring of individuals social-media posts. | 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 | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (0). | 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. |
| Mandatory disclosure 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). |
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.