What is Stamp duty?

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Stamp duty is a tax levied on certain financial transactions, documents, and securities in Switzerland. It is regulated under the Federal Act on Stamp Duties and primarily applies to companies, financial institutions, and investors. This tax is an essential part of the Swiss fiscal system, contributing to federal revenues.

Types of Stamp Duty in Switzerland

  1. Issuance Stamp Duty
    • Imposed on the issuance of new shares or similar equity instruments by Swiss companies. The rate is typically 1% of the capital increase exceeding CHF 1 million. Start-ups and smaller businesses often benefit from exemptions or reduced rates to encourage growth.
  2. Transfer Stamp Duty
    • Applies to the sale or transfer of Swiss or foreign securities through a Swiss securities dealer. The standard rate is 0.15% for Swiss securities and 0.3% for foreign securities, calculated on the transaction’s value.
  3. Insurance Premium Stamp Duty
    • Levied on certain insurance premiums, with rates varying by policy type. For example, life insurance is generally exempt, while other insurance types, such as liability insurance, may be subject to the duty.

Importance of Stamp Duty

Stamp duty ensures legal and financial transparency in Switzerland’s highly regulated business and financial sectors. While it represents a cost for businesses and investors, exemptions and deductions often apply to promote economic activity, particularly for start-ups and innovative ventures.

In Switzerland’s stable and efficient tax system, stamp duty is a well-established mechanism that supports public funding while aligning with the country’s business-friendly environment.