Tag Archives: CapLaw-2015-5

Withholding Tax on Interest to be Replaced by Paying Agent Tax System

The Swiss Federal Council issued a proposal on 17 December 2014 to replace the current withholding tax on interest payments by a new paying agent tax system. The new system would be applicable to both domestic and foreign issued bonds and debentures. A Swiss paying agent would have to withhold the Swiss withholding tax, if  the payment would be made to a domestic individual. Payments to domestic entities as well as payments to foreign persons would be out of scope of the Swiss withholding  tax system.

By Stefan Oesterhelt (Reference: CapLaw-2015-5)