On the 25 September 2022 the Swiss electorate will vote on the Amendment to the Federal Act on Withholding Tax.

Current situation

The Confederation levies a withholding tax of 35 per cent on income from interest. People living in Switzerland can claim this tax back if they declare the interest in their tax return. Withholding tax is only due on interest from bonds if the bonds were issued in Switzerland. This is a disadvantage for the Swiss economy, because in order to raise money, many companies issue their bonds in countries where no withholding tax is levied.

The proposal

Swiss companies should be encouraged to issue bonds in Switzerland. This is why the new bill exempts domestic bonds from withholding tax. Swiss bonds would thus become more attractive for investors. The bill also abolishes the sales tax on domestic bonds and other securities. This is currently payable when buying and selling securities. Both measures would benefit the Swiss economy. In the best-case scenario, the reform could already finance itself in the year that it comes into effect. A referendum against the amendment has been called for. The referendum committee claims that the bill will result in more tax evasion.

This Market

This market resolves YES if the amendment is accepted. A majority of voters is needed for both of the proposals. A majority of states is not needed, because there is no change to the constitution.

Source: https://www.admin.ch/gov/en/start/documentation/votes/20220925/amendment-to-the-federal-act-on-withholding-tax.html