Taxation in Obwalden
Flat-rate tax in the canton of Obwalden – natural personsObwalden was the first Swiss canton to introduce a ‘flat-rate’ tax. Since 2008, Obwalden has applied a standard rate of tax for natural persons of 1.8 percent on all income, which is then multiplied by the base tax rate (Steuerfuss). Overall, income is subject to a maximum tax of 24.6%, dividends to a maximum of 14.6% and assets at 1.4 per mil. Tax law in Obwalden is family-friendly given that it specifically relieves the burden on married couples with double incomes.
No Capital transfer tax and inheritance tax in Obwalden
If a person living in Obwalden dies, there is no inheritance tax on their mobile assets. Non-mobile assets, such as properties, are always taxable in the Canton in which they are actually located (situs principle).
Also no gift tax is owed for beneficiaries of mobile wealth, who receive such donations from persons with a fiscal domicile in Obwalden.
Following a donation or inheritance, the beneficiary is obliged to declare the inherited assets under the list of securities in the tax return for the respective year. The assets and any income therefrom are also subject to standard taxation.
Beneficial corporate taxation
At a rate of 12.74% for legal persons (canton tax, local tax and federal tax), the canton of Obwalden has one of the lowest rates of profits tax in Europe. The capital tax is 0.001% and is the lowest in Switzerland (from 01.01.2020). Entrepreneurs with a controlling interest obtain tax relief in that the double economic burden is reduced. Dividends from shareholdings of 10 percent and more are subject to merely half-rate taxation in Obwalden.
Links
Tax administration in Obwalden: www.steuern.ow.ch
Promoting Obwalden as a location: www.iow.ch