Tax ruling - Swiss client / investors
In scope from CHF 500k debt issues.
10/20 Rule: The interest of a company that issues 10 identical bonds or 20 different bonds is subject to withholding tax (CH 35%).
A FTA (ESTV) ruling with Fabienne (costs approx. CHF 7-10k) can be used to protect against a subsequent gross-up of 53.8% and the 35% withholding tax. This means that Luxembourg is not seen as an evasion of the withholding tax and is therefore exempt (Compartment is seen as one creditor and Bond is not seen as a domestic issue).
CLNs are also subject to this problem. If the client has 10 or less investors, he is out of scope.
IMPORTANT: We do not advise on these matters. Customers must check it themselves, otherwise we may be liable!
4 Views