On 1 November 2024, the Swiss Federal Tax Administration (SFTA) clarified its practice with regard to securities transfer tax on intra-group brokerage activities. It will be applied to all open cases:
- The intra-group brokerage of taxable securities by a company that does not qualify as a Swiss securities dealer for stamp tax purposes is not subject to securities transfer tax because it is not viewed as a business activity. Therefore, any intra-group brokerage of a management company will not trigger securities transfer tax.
- However, a company that qualifies as securities dealer for stamp tax purposes because of its securities holdings (more than CHF 10 million of taxable securities in its balance sheet), has to remit securities transfer tax on intra-group brokerage, unless an investment bank is entrusted with the transaction or the negotiations are led by a person who is not part of the company. This means that the there is only a limited benefit for transactions which are accompanied by a holding or headquarters company