The emissions levy will not be abolished for the time being.

In Switzerland, the so-called issue levy is charged on the issuance of equity securities. Read in our article in which cases a levy is due and why the abolition was temporarily suspended.

Stamp Duty on Equity

The issuance levy is part of the stamp duties and is levied on domestic equity securities. The levy covers shares of stock corporations and partnership limited by shares, corporate contributions of LLCs, cooperative shares as well as profit-sharing and participation certificates. It also covers contributions from shareholders or cooperators without corresponding consideration and without increasing the capital registered in the commercial register. Moreover, the levy is also due when the majority of participation rights change hands in a company that has been economically liquidated or converted into liquid form. The levy amounts to 1.0% of the participation rights, with an exemption limit of 1 million francs for incorporations and capital increases. If the issuance of participation rights is associated with a merger, conversion, or division, or occurs due to the relocation of a foreign company to Switzerland, no levy is due.

Abolition of the Issuance Levy

As part of the Corporate Tax Reform III, the abolition of the stamp duty on equity was planned. The proposal for reform was returned by the National Council to the Council of States in mid-March with considerable approval. However, the abolition of the issuance levy was temporarily suspended. On the one hand, the matter is currently not urgent enough, and on the other hand, the federal finances should not be overstretched, was the reasoning. The abolition of the issuance levy would cause tax losses amounting to nearly 230 million francs for the Confederation in the short term.

Proponents argue that abolishing the levy would strengthen Switzerland as a business location in the long term. On the one hand, large companies that finance themselves through foreign subsidiaries currently have advantages over Swiss SMEs, which have to pay more for new equity due to the issuance levy. In addition, the levy on equity encourages the uptake of debt (borrowing), which contradicts the economic interest in stable companies.