Cantonal and communal taxes

Swiss cantons and municipalities levy major direct taxes, especially income and wealth taxes for individuals and profit and capital taxes for companies. Federal tax harmonisation aligns key procedural and structural elements, but cantons retain significant autonomy over rates, deductions, tax burdens and administrative practice. Communal taxes are often calculated as a percentage or multiple of the cantonal tax, depending on local law. Residence, domicile, permanent establishments and real estate ownership determine taxing rights. Because cantonal differences can be substantial, moving, restructuring or owning assets in several cantons often raises allocation and procedural issues.