Stamp duties

Stamp duties in Switzerland are an important topic for companies and individuals alike, as they are levied on various transactions and legal acts.
The Federal Stamp Act (LT) and cantonal provisions regulate indirect taxes and stamp duties in the country, setting duty amounts that vary according to the nature of the transaction, its value and the canton in which it takes place.
These stamp duties are an important source of revenue for the cantons and the Swiss Confederation.
With this in mind, it is essential to be familiar with the different types of stamp duty (infra B.), when they are levied (C.) and how they are calculated (D.), in order to minimize the costs associated with these fees (E.).

The different types of stamp duty in Switzerland

Three types of stamp duty are levied in Switzerland, each applied to specific transactions and legal acts.
Issue duty applies to the creation and issuance of certain securities such as shares, bonds and participation certificates.
Trading duty is levied on stock market transactions by brokers and companies involving financial instruments such as shares and bonds.
Insurance premium duty is levied on insurance premiums paid by policyholders, with insurance companies having to pay this duty on each insurance premium they collect.
Rates may vary according to canton and type of transaction.

When and why stamp duties are levied in Switzerland

Why and when stamp duties are levied depends not only on the type of stamp duty in question, but also on the cantons and municipalities.
For example, issue duty is levied on the creation and issuance of certain securities, while trading duty is charged on every transaction carried out on the financial markets.
Stamp duties are levied to finance the activities of the Swiss state, such as public services, and their collection is essential to maintaining Switzerland’s infrastructure and quality of life.

Stamp duty calculation in Switzerland

The calculation of stamp duty depends on a number of factors, including the type of legal act performed, the value of the act and the region in which the act is performed.
Stamp duties are generally calculated as a percentage of the value of the deed, and may vary from canton to canton.
Cantonal laws and regulations set the applicable rates for each type of legal act, and the amount of stamp duty can be calculated by multiplying the value of the act by the applicable rate.
In some cases, stamp duty may be waived or reduced.

How to minimize stamp duty costs in Switzerland

To minimize stamp duty costs in Switzerland, companies can adopt a number of strategies.
Firstly, they can optimize their structure to reduce costs and tax burdens.
Secondly, they can negotiate stamp duty rates with local tax authorities, or work with brokers offering competitive rates for brokerage and transaction services.
Grouping transactions together can also reduce the number of stamp duties payable.
Tax planning can also help companies minimize stamp duty costs by reducing their tax exposure or restructuring their business.
Finally, tax treaties can enable companies to reduce stamp duty rates in countries with which Switzerland has double taxation agreements.
By applying these measures, companies can minimize stamp duty costs in Switzerland.