Author
Dr. Roland A. Pfister
Introduction
This article analyzes the impact of Switzerland’s 35% withholding tax (WHT) on bond interest payments and its implications for the country’s competitiveness in international capital markets. While Switzerland offers economic and fiscal advantages, the WHT discourages foreign investment and reduces the appeal of Swiss-issued bonds. Through comparisons with Liechtenstein and Luxembourg and the inclusion of practical examples, the article explores administrative practices, recent simplifications, and argues that abolishing the WHT could enhance Switzerland’s position as a global financial hub—especially in light of developments like the OECD’s 15% global minimum tax.
Publisher: International Bureau of Fiscal Documentation (IBFD)
