 General: Individuals, who are resident or domiciled in Switzerland, are subject to federal, cantonal and municipal taxes on worldwide income, with the exception of income from real estate and permanent establishments, which are located abroad. Net wealth taxes are assessed on the same principles. An individual is considered domiciled in Switzerland if he or she takes up legal residence, or has the intention to stay in Switzerland, for at least 30 days and engages in a gainful activity, or stays in Switzerland at least 90 days without engaging in a gainful activity.
Rates: The rate of federal tax for a married couple ranges from 0% on income of CHF 26,700 to a maximum of 11.5% on income exceeding CHF 843,600.
Social Security Taxes: There are three classes of contributions: - Compulsory state minimum insurance for unemployment, old age, death and permanent disability.
- Payment into a compulsory insurance and pension plan connected with the employment.
- Private voluntary retirement and insurance plan.
Deductions and Exemptions: Personal and family allowances depend on the personal circumstance of the taxpayer and may not be standardized.
Full and partially deductible items include: any interest payments, social security contributions, life insurance premiums, accident and health insurance, expenses incurred during work, home refurbishment, certain charitable donations.
Individual allowances may in certain circumstances be ruled with Schaffhausen tax authorities in advance.
 The rules for determining taxable income and tax-deductible items are similar to those for federal tax. The tax rate consists of a base rate multiplied by a coefficient. The cantonal and the municipal tax rates are a multiple of the base rate. Maximum cantonal and municipal tax rates in the various cantons vary between 12.5% and 33.5%. In addition, net wealth tax is levied at the cantonal and municipal level. There are no taxes on capital gains and inheritance to direct descendants.
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