Overview BAK Taxation Index

Tax attractiveness in international location competition

Attractive taxes for companies and highly qualified employees are a key factor in international location competition. However, comparisons between tax burden in different locations are often of limited value because tax systems differ, sometimes considerably. This is where the BAK Taxation Index for companies and highly qualified individuals comes in. This index, which has been published since 2003, considers all relevant taxes at all levels of government, the interaction between these taxes and the most important rules for determining the tax bases. The result is the acutal taxes owed by a company or a highly qualified individual in the Swiss cantons and their most important international competitor locations. 

The BAK Taxation Index project is made posible by the commitment of the Swiss Federal Tax Administration (FTA) and 15 Swiss cantons. The BAK Taxation Index is compiled in close cooperation between BAK Economics and the ZEW – Leibniz Centre for European Economic Research.

Main results of the BAK Taxation Index 2024

The Swiss cantons are very well positioned in international tax competition. The effective average tax rate (EATR) for companies and highly qualified individuals is significantly lower in the Swiss cantons tahn in many international competitor locations. For example, neighbouring Germany, Austria, Italy and France impose significantly higher tax burdens on both companies and highly qualified individuals. Patricularly in terms of tax attractiveness for companies, the Swiss cantons are among the global leaders with locations such as Ireland, Singapore and Hong Kong.