Swiss Federal Council proposes withholding tax exemption for Co Cos, write-off and bail-in bonds

Switzerland’s Federal Council on September 11 proposed to extend the temporary withholding tax exemption for interest paid on contingent convertible bonds (CoCos) and write-off bonds of systematically important banks and to establish a similar exemption for bail-in bonds.

The exemptions create the necessary tax environment for Swiss banks to be able to issue these financial instruments from Switzerland at competitive terms, the Federal Council said.

The Federal Council also said it will introduce a proposal for the paying agent principle after the referendum on the initiative “Yes to the protection of privacy.”

See:

• Release

Related MNE Tax articles:

• Switzerland discontinues effort to overhaul withholding tax system, proposes extending exemption for some bonds

• Swiss Federal Council rejects “Yes to the protection of privacy” initiative