INTERNATIONAL TAX PLAZA - Switzerland announces that it retained CHF 317 million of taxes on behalf of the EU Member States in 2014 (Greece is in the top 5)

(June 30, 2015)

On June 30, 2015 the Swiss Federal Department of Finance (FDF) issued a press release announcing that the gross revenue generated from the system of tax retention on interest payments made in Switzerland to EU taxpayers amounted to CHF 317 million for the tax year 2014. (CHF 510.1 million in 2013).

In compliance with the agreement on the taxation of savings with the European Union (EU), in force since July 1 2005, a system of tax retention of 20% was imposed from July 1, 2008 and the top rate of 35% has been applied since July 1, 2011. 75% of the proceeds are passed to the EU member states concerned (CHF 237.75 million). 25% (CHF 79.25 million) of the proceeds go to the Confederation, with 10% (CHF 7.9 million) passed on to the cantons.

In addition, the agreement makes provision for the recipients of interest payments to choose between the system of tax retention and a voluntary declaration to the tax authorities. According to the press release in 2014, approximately 150,000 declarations were received. The press release furthermore states that the breakdown of these declarations (according to each EU country) will be published soon on the website of the Swiss Federal Tax Administration (FTA).

Based on the information provided by the Swiss Federal Department of Finance in the press release the top 5 of Individual EU member states' share of the tax retained in 2014 is formed by the following 5 EU Member States:

1. Italy CHF 73.4 million

2. Germany CHF 51.3 million

3. France CHF 39.5 million

4. Spain CHF 10.9 million

5. Greece CHF 9.6 million

For further information click here to be forwarded press release as issued by the Swiss Ministry of Finance.

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