Switzerland: Abolition of withholding tax on interest from certain bonds
The Swiss Federal Council has revised the Withholding Tax Act to remove, with effect from 1 January 2013, withholding tax on interest payments made with regard to:
- Certain contingent convertible bonds (“CoCos”) issued by systemically important banks;
- Write-down bonds.
Note: A list of the “CoCos” and write-down bonds affected is not currently available.
To be effectively exempt from withholding tax, these bonds must:
- Be issued between 1 January 2013 and 31 December 2016;
- Meet required conditions under supervisory law;
- Be approved by the Swiss Financial Market Supervisory Authority to count towards capital requirements.
We are monitoring the situation closely and will provide you with further information as it becomes available.
| This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |