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SW1.3.1ÌýÌýÌýÌý Income tax

A Swiss resident individual is subject to Swiss federal, cantonal and communal taxes on his worldwide income and net wealth, except for income generated by:

1. Ìý

   •ÌýÌýÌýÌý foreign business, and

2. Ìý

   •ÌýÌýÌýÌý foreign permanent establishments, and

3. Ìý

   •ÌýÌýÌýÌý real estate situated abroad

If an individual Swiss taxpayer owns more than 10% of a company, dividends are subject to special tax reductions depending on each cantonal law. The tax rates of direct federal tax on income and all cantonal taxes on income and net wealth are on a progressive basis.

The federal tax rates apply to single individuals and to married taxpayers. The married taxpayers' rate also applies to:

1. Ìý

   •ÌýÌýÌýÌý registered couples of the same sex living together, and

2. Ìý

   •ÌýÌýÌýÌý widowed, separated/divorced or single persons living with children who are minors and studying at their expense

See the section on Tax rates atSW1.5.

Income of spouses and minor children are included with the head of the household's income. The exception here is for the earned income of a minor, which