Investor tax reporting services
Foreign AIFs that are registered for public distribution in Switzerland are required by the Swiss Financial Market Supervisory Authority (FINMA) to report full transparency to Swiss private investors. Such transparency includes notably the provision of the Swiss income tax values.
Swiss Tax
Key Features
Up-front registration |
❌ |
| Taxation mechanism | Income based |
Annual reporting |
✅ |
Deadline of the reporting |
❌ |
Main features
Swiss private investors can benefit from an advantageous tax regime if the AIF calculates and reports its taxable income annually, otherwise, private investors will not be able to distinguish the tax-exempt portion (i.e. capital gains/certain income) from the taxable portion (i.e. interest and dividends). Swiss tax reporting is not an obligation but is a strong market practice.
There is no legal deadline for filing the income tax values. However, we recommend publishing income tax values by April/May of the year following the fiscal year end of the entities as Swiss private investors generally start with the preparation of their tax returns at that time.
The income tax values are calculated annually and submitted to the Swiss Federal Tax Administration (Eidgenössische Steuerverwaltung - ESTV). The ESTV publishes the tax values on its annual official rates list ("Kursliste"). In order to list the share classes to the Swiss SFTA website, asset managers must obtain a Valor number, which is a local unique identifier per share class (to be requested to SIX Securities Services AG).
Benefits of the regime
Swiss private investors may suffer a higher taxation in case the AIF is not reporting the Swiss tax figures annually.
Scope of services
Calculation of Swiss income tax values for each share class in scope according to current Swiss tax law and practice;
Target fund, fund of funds and REITs analysis for full tax transparency rules;
Correspondence with the Federal Tax Administration regarding the tax reporting publication (if any);
High level assistance to answer both investors and distributors’ questions on the tax figures published;
Assistance in fund structuring: Tax advice on the group structure from a tax perspective, in particular regarding the qualification as transparent/Opaque entity and the tax consequences for the fund as well as the investors.
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