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Facilitation of group financing: FTA publishes practice note regarding the flow-back of proceeds from domestically-guaranteed foreign bonds

Facilitation of group financing: FTA publishes practice note regarding the flow-back of proceeds from domestically-guaranteed foreign bonds

The new administrative practice leads to a relaxation of the conditions under which a foreign group company can issue a bond with a guarantee of a Swiss direct or indirect parent company and return the funds to Switzerland, without the foreign bond being reclassified as a Swiss bond and the interest payments thus being subject to Swiss withholding tax.