What types of stamp duty are charged in Switzerland?
The issue stamp duty relates to the creation and increases in capital of Swiss companies and cooperatives, calculated on the basis of the nominal value of the shares issued or increased.
The trading stamp duty applied to purchases and sales of Swiss and foreign securities by Swiss securities dealers. It is generally calculated according to the value of the securities bought or sold.
The stamp duty on insurance premiums applies to different types of insurance (third-party liability, fire, comprehensive and household). It is generally calculated on the basis of the amount of premiums paid. This tax is generally paid by policyholders.
Issue stamp duty
Swiss stamp duty is one of three stamp duties. It is levied on the creation or increase, whether for a consideration or free of charge, of participation rights in various forms, in particular :
- Shares in Swiss public limited companies and limited partnerships with shares
- Shares in Swiss limited liability companies (LLC)
- Shares in Swiss cooperatives
- Profit-sharing certificates issued by Swiss companies or cooperatives (rights to share in net profits or liquidation results)
- Participation certificates issued by Swiss companies, cooperatives or commercial enterprises governed by public law
Par droit de participations nous entendons soit (1) les versements supplémentaires que les actionnaires, les coopérateurs ou les associés font à la société ou à la coopérative sans contre-prestation correspondante et sans que soit augmenté le capital social inscrit au registre du commerce ou le montant versé sur les parts sociales de la société coopérative.
Soit (2) Manteau d’action : le transfert de la majorité des actions ou des parts sociales d’une société ou d’une coopérative suisse qui est économiquement liquidée ou dont les actifs ont été rendus liquides. Art.5 LT al.2 let. B LT
The issue duty amounts to: 1.0% on Swiss participation rights.
The creation of companies or an increase in capital using participation rights issued for valuable consideration benefits from a franchise of 1 million francs.
The tax liability lies with the issuing company.
Exceptions to stamp duty on issues
Shareholdings in companies
Participation rights in public limited companies, partnerships limited by shares, limited liability companies or cooperative societies which carry on their activity, without any purpose for profit, for the benefit of the poor and the sick, religious worship, education or other works of public utility, or which aim to provide low-cost housing or to guarantee, insofar as, according to the Articles of Association:
- dividends are limited to a maximum of 6% of the paid-up share capital
- the payment of directors' fees is excluded
- the balance of the assets, after repayment of the paid-up share capital, is allocated to similar purposes in the event of the company being dissolved
But also participation rights issued for valuable consideration when a public limited company, a partnership limited by shares or a limited liability company is founded or its capital is increased, provided that the total amount paid in by shareholders does not exceed one million francs
Merger participation rights
Shareholding rights created or increased pursuant to decisions to merge or merge economically equivalent to mergers, transformations and demergers of public limited companies, partnerships limited by shares, limited liability companies or cooperative societies.
Cooperative shareholdings
The creation of participation rights in cooperative societies or an increase in their nominal value, as long as the members' contributions, as defined in art. 5, do not exceed a total of one million Swiss francs.
Participation rights that are created or increased by means of a cooperative bank's participation capital or social participation capital, provided that the company or cooperative proves that it has paid the issue duty on this participation capital or social participation capital.
Shareholdings in transport companies
Participation rights in transport companies, created or increased in favour of public authorities as a result of their investment contributions.
Shareholding rights increased by premiums
Participation rights created or increased by means of previous premiums and payments from shareholders or members, provided that the company can prove that it has paid the issue duty on these premiums and payments.
Rights to units in collective investment schemes
Also excluded is the creation of units in collective investments within the meaning of the LPCC.
Rights to investment shares for the takeover of a farm
Shareholdings created or increased in order to take over a business or part of a business of a public limited company, a partnership limited by shares, a limited liability company or a cooperative provided that, according to the balance sheet for the last financial year, half of the capital and legal reserves of this company or cooperative are no longer covered.
In the case of sanitation
The creation of participation rights or the increase in their nominal value, in the event of an open reorganisation, up to their amount prior to the reorganisation as well as additional payments by shareholders or members in the event of a silent reorganisation, provided that:
- existing losses are eliminated, and that
- benefits from shareholders or associates do not exceed CHF 10 million in total
Caution: If the conditions for exemption are no longer met, the duty must be paid on the participation rights still in existence.
Trading stamp duty
Swiss trading duty is the 2nd stamp duty levied by the Swiss Confederation. Its purpose is to tax the transfer for consideration of ownership of different securities if one of the contracting parties or intermediaries is considered to be a securities trader.
Taxable items
- Bonds
- Shares, SA or Sàrl
- Shares and participation certificates in cooperative societies
- Participation certificates and dividend-right certificates
- Units in collective investment schemes within the meaning of the LPCC
Securities dealer
The question of who is a securities dealer needs to be addressed to determine whether the institution in question must withhold and pay stamp duty on the transactions it carries out.
Sont considérés comme commerçants de titres : les banques, les personnes physiques ou morales ainsi que les établissements stables et succursales suisses d’entreprises étrangères dont l’activité consiste exclusivement ou essentiellement à exercer pour le compte de tiers le commerce de documents imposables et/ou à s’entremettre en tant que conseiller en placement ou gérant de fortune dans l’achat et la vente de documents imposables.
Mais aussi: les sociétés, ainsi que les institutions de prévoyances professionnelles et de prévoyance liée, dont l’actif se compose, d’après le dernier bilan de plus de 10 millions CHF d’éléments imposables.
Finalement, la confédération, les cantons et les communes politiques y compris leur établissements, pour autant que leurs comptes indiquent des éléments imposables de plus de 10 millions CHF
Exceptions to trading stamp duty
There are, however, exceptions to the levying of negotiation stamp duty.
Émission de titres
L’émission d’actions, de parts sociales de sociétés à responsabilité limitée et de sociétés coopératives, de bons de participation sociale de banques coopératives, de bons de participation, de bons de jouissance et de parts de placements collectifs au sens de la LPCC, d’obligations et de papiers monétaires suisses, y compris la prise ferme par une banque ou une société de participation et la répartition des titres à l’occasion de leur émission ultérieure.
Apport de titres
L’apport de titres servant à la libération d’actions, de parts sociales de sociétés à responsabilité limitée et de sociétés coopératives, de bons de participation sociale de banques coopératives, de bons de participation et de parts de placements collectifs au sens de la LPCC, que ces actions, parts ou bons soient suisses ou étrangers.
Commerce de droits de souscription
Le commerce de droits de souscription.
Remise de titres pour remboursement
La remise de titres en vue de leur remboursement.
Émission d’obligations étrangères
L’émission d’obligations de débiteurs domiciliés à l’étranger libellées en monnaie étrangère (euro-obligations), ainsi que celle de droits de participation à des sociétés étrangères. Seuls sont des euro-obligations les titres pour lesquels le versement d’intérêts aussi bien que le remboursement du capital interviennent en monnaie étrangère.
Commerce de papiers monétaires
Le commerce de papiers monétaires suisses et étrangers.
Achat et vente d’obligations étrangères
L’achat et la vente d’obligations étrangères ainsi que l’entremise dans l’achat et la vente pour l’acheteur ou le vendeur lorsqu’il est partie contractante étrangère.
Transfert de titres en cas de restructuration
Le transfert de titres imposables qui, dans le cadre d’une restructuration, en particulier d’une fusion, d’une scission ou d’une transformation, est effectué par l’entreprise qui est reprise, qui se scinde ou qui se transforme au profit de la société reprenante ou transformée.
Acquisition ou aliénation de documents imposables en cas de restructurations
L’acquisition ou l’aliénation de documents imposables en cas de restructurations au sens des art. 61, al. 3, et 64, al. 1bis, de la loi fédérale du 14 décembre 1990 sur l’impôt fédéral direct ainsi qu’en cas de transfert de participations d’au moins 20 % du capital-actions ou du capital social d’autres sociétés à une société suisse ou étrangère du groupe. Le commerçant de titres professionnel au sens de l’art. 13, al. 3, let. a et b, ch. 1, est exempté de la partie des droits qui le concerne lorsqu’il vend des titres de son stock commercial ou qu’il en acquiert en vue d’augmenter ce stock. Est considéré comme stock commercial le stock de titres composé de documents imposables résultant de l’activité commerciale du commerçant professionnel, à l’exclusion des participations et des stocks présentant les caractéristiques d’un placement.
Stamp duty on insurance premiums
The right relates to the payment of insurance premiums:
- Faisant partie du portefeuille suisse d’un assureur soumis à la surveillance de la Confédération ou d’un assureur suisse ayant un statut de droit public
- Qu’un preneur d’assurance suisse a conclues avec un assureur étranger qui n’est pas soumis à la surveillance de la Confédération.
Exceptions to trading stamp duty
Premium payments are not subject to duty:
- life insurance not subject to surrender and life insurance subject to surrender where premiums are paid periodically; the Federal Council shall lay down the necessary delimitations in an ordinance
- life insurance, provided that the insurance is used for occupational pension provision within the meaning of the LPP114
- life insurance taken out by a policyholder domiciled abroad
- health and disability insurance
- accident insurance
- insurance of goods en route
- insurance against damage to agricultural land and crops caused by the forces of nature
- unemployment insurance
- hail insurance
- livestock insurance
- reinsurance
- hull insurance for aircraft and boats described in the ordinance, which are used mainly for the professional transport of persons and goods abroad
- insurance against fire, theft, glass breakage, water damage, credit insurance, machinery and jewellery, if the taxpayer establishes that the insured item is abroad
FAQ - Stamp duty
In Switzerland, federal stamp duty is levied by the Federal Tax Administration.
There are three types of stamp duty in Switzerland:
- Negotiation stamp duty.
- Stamp duty on insurance premiums.
- Stamp duty on equity capital.
Trading stamp duty is levied on the purchase and sale of shares, bonds, structured products, investment funds, ETFs and other securities.
Stamp duty is collected by the bank or broker.
In Switzerland, stamp duty is levied on insurance premiums such as third-party liability insurance, motor insurance, travel insurance and pet insurance.
Premiums for health insurance, accident insurance, disability insurance, unemployment insurance, livestock insurance and most life insurance are not subject to stamp duty.s
When a Swiss company issues new shares, partnership shares, cooperative society shares, dividend-right certificates or participation certificates, it must pay an issue duty to the Confederation. However, this fee is payable only if the value of the newly issued securities exceeds CHF 1 million.
