Private individuals also enjoy tax benefits in the canton of Obwalden. The highest rate of income tax is 24.1%. The maximum rate for dividends is 13.2% and 1.4 of one percent for assets. Tax legislation in Obwalden is family-friendly, since there is a reduced rate for married couples with double incomes. The cost of 3rd party childcare is fully deductible from taxable income. In addition, generous social security deductions are granted. Foreigners with a work permit have their tax deducted from their salaries at source. Foreign citizens not working in Switzerland qualify for a lump sum taxation negotiated with the tax authorities.
