Switzerland: Personal Taxation
The federation has the exclusive right to levy this tax. The rates are as follows:
- 1% on the issue of shares where the value of the shares is over CHF1m including cases in which shares are issued at a premium. A loan made by a shareholder to the company without any consideration is also subject to this tax. The tax is also payable on the nominal value of shares where a majority shareholding is transferred as a consequence of a liquidation irrespective of the fact that the shares have virtually no market value in the circumstances. The issue tax is not payable by the Swiss branch of a foreign company.
- A rate of 0.075% on the transfer value of shares in Swiss resident companies and 0.15% on the transfer value of shares in non-resident companies where the transfer is effected by "security dealers" which definition includes banks, stockbrokers, investment fund managers and other financial institutions. The definition of security dealers is quite wide and includes any company which owns securities with a value in excess of 10m Swiss francs and all intermediaries. The tax is split between the buyer and the seller and is automatically deducted by the dealer.
- A rate of 5% on an insurance premium or 2.5% in the case of a life insurance premium paid in one contribution.