On 7 December 2021, the Council of States eliminated the last difference with regard to the amendment of the Withholding Tax Act between its version and the version of the National Council. For interest payments, withholding tax will only be levied on bank interest paid to Swiss resident individuals in the future. With the abolition of withholding tax on bonds, it is the intention to strengthen the Swiss debt capital market. Dividends will continue to be subject to withholding tax.
The securities transfer stamp tax on Swiss bonds will also be abolished.
The amended Withholding Tax Act shall come into force beginning of 2023. It will only apply to bonds issued as of 1 January 2023. This means that all interest on existing bonds will continue to be subject to withholding tax.
Since the socialist party has already announced its opposition against the amendment before the final vote on 17 December 2021, the voters will probably have to approve the amendment of the Withholding Tax Act.