Securities transfer tax (Umsatzabgabe)

Securities transfer tax (German Umsatzabgabe) is a Swiss federal tax on the transfer for consideration of ownership of taxable documents (shares, bonds, fund units) when a Swiss securities dealer is a party to, or intermediary in, the transaction. The rate is 0.15% for securities issued by a Swiss resident and 0.30% for foreign securities, calculated on the consideration and borne equally by each party.

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In a share deal, the involvement of a securities dealer (bank, investment firm) in the transaction chain can trigger this tax on the price of the shares sold. It differs from issuance stamp duty, which applies to the creation of capital rather than its transfer. Anticipating it is part of the tax analysis of a disposal.

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Example: the sale of a Swiss share package for CHF 10.0 million, with a Swiss bank qualifying as a securities dealer involved, generates securities transfer tax of 0.15%, i.e. CHF 15,000, split between the parties.

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At Hectelion, we anticipate securities transfer tax in structuring share deals to avoid any unbudgeted tax cost at closing.