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Competences
> • Taxation
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BAK Taxation Index |
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The taxation of companies and highly qualified employees plays an important role in the development of business locations. Since 2001, BAKBASEL measures the effective taxation within its project «BAK Taxation Index». In the first phase of the project (2001), the corporate taxation was measured. In the second phase, 2002-2003, the method for analysing corporate tax was refined and the scope was expanded to study more regions and cover a longer period. At the same time, a method was developed and applied for comparing the taxation of highly qualified employees internationally. The phase of the project from 2003 to 2005 involved, in addition to some refinements to the methodology and technical models, considerable geographical expansions and the updating of all data. Finally, in the phase of the project from 2006 to 2007 all data was updated to the 2007 legal status and an important geographical expansion was undertaken: Asian business locations were for the first time included (Singapore, Hong Kong, Shanghai, Beijing).
The BAK Taxation Index covers 86 regions in Europe, the USA and Asia. Its high quality makes it very well regarded and its findings are used by economic researchers and political advisers alike. The combination of taxation levels applied to companies and to the employment of highly qualified employees, the scientifically accepted methodology and international comparisons, the topicality and comprehensive geographical coverage, not to mention our active press and public relations work, guarantee that this project is widely recognised and used. Other taxation comparisons (i.e. by the European Commission or the OECD) do not include Asian locations. |
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NEW: Update 2009 |
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The project phase 2008-2009, which seamlessly followed the preceding phases of the project, was completed as planned. Again, a few selected geographical expansions have been made. A central element is the update of all data with the legal status of 2009. The methodology for the analysis of the Swiss Cantons was also extended: In addition to the economically most important place (capital of the Canton), the most advantageous and disadvantageous location (community) in terms of taxation is also indicated.
The most important results have been published in an Executive Summary and in the media: |
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Executive Summary «BAK Taxation Index 2009»
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Press release "BAK TAXATION INDEX 2009 for companies"
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Press release "BAK TAXATION INDEX 2009 for highly qualified manpower"
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Project Phase 2010-2011 |
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In 2010, a new update of the BAK Taxation Index for Switzerland is planned. Besides further geographic extensions with regard to new competing locations/regions, a focus on the sustainability of fiscal policy and the connected possibilities of quantitative acquisition of data is planned in this phase. .Hereby, different indicators will be developed assessing the sustainability of the current budgetary as well as tax policy in order to make meaningful statements on future developments of tax policies of a particular location. |
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Methodology |
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Corporate tax |
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In this element, the Devereux-Griffith Approach (DG Approach) is used, which calculates the “effective average tax rates” as well as “effective marginal tax rates” (i.e. the tax burdens generated by capital projects for which the return on investment is high enough to be regarded as worthwhile by investors). The “effective average tax rate” is defined as the taxation on projects where the return is greater than the minimum. |
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Taxation of highly qualified employees
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One traditional way of comparing the attractiveness, in terms of taxation, of competing regions is to concentrate on the tax levied on movable assets and companies. Recently, this approach has been extended in order to allow for the increasing mobility of employees, especially those with very good or the very best qualifications. A number of surveys suggest that companies competing for the most highly qualified employees are also very interested in the level of taxation and other charges imposed on these potential employees in each region. |
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Factsheet «BAK Taxation Index», german
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Factsheet «BAK Taxation Index», français
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Contact:
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Martin Eichler
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+41 61 279 97 14
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martin.eichler@bakbasel.com
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Marc Bros de Puechredon
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+41 61 279 97 25
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marc.puechredon@bakbasel.com
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