Of Special Interest
Filters
- Newslink Trends-The Global Strategic Perspective
- Juniper Research says digital wallet users to exceed 4.4 billion by 2025, as mobile drives digital payments’ revolution
- Criminals exploit COVID-19 pandemic with rise in scams targeting victims online
- Equifax says Open Banking proving pivotal to pandemic lending
- Consumer confidence in banks, credit card providers and investments remain stable as demand supercharges digital finance says Toluna research
- Mintos says Europeans are starting to embrace investing
- US banks see IT modernisation as a way to improve customer experience
- Risk mitigation in global trade depends on digitisation-Andrew Raymond, CEO, Bolero International comments
- Juniper Research new study says the volume of B2B payments facilitated by non-banks will exceed 53 billion in 2022, from a COVID-related low of 38 billion in 2020
- CMA issues fifth publication over 3 years of the service quality league table of personal and business current account providers
- Barclays says scammers take advantage of COVID-19, cashing in on nations’ uncertainty
- S&P Global report says financial market infrastructure sector's earnings likely to cool off In second half
- Global banking market capitalisation slumps by over 30% amid pandemic says Buyshares research
- Digital wallet spend in Europe & North America to increase by 40% in 2019, finds study
- Juniper forecasts mobile money transactions will exceed 200 billion by 2024
- Banks can save the world from climate change, says former UN climate chief
- Research by NatWest reveals gender divide over attitudes to saving
- Europe’s big bank problem: too much capital is trapped in the US, says Scope
- Later-Life lending market set to almost double in the next 10 years, finds report
- Barclays/Cebr report challenges nation to think differently about wealth
- Fifth of UK investors looking to debt investment, new research reveals
- Regtech will play a more important role in PSD2, says Mitek
- Banks turn to Fintech partnerships to improve customer experience, finds Fraedom
- New industry code to tackle fraud must deliver, says Which?
- New TTF report highlights loss of trust in financial services
- Arxan highlights financial app vulnerability epidemic
- SAS asks whether banks really need to choose between operations and innovation
- Which? raises alarm as almost 1,700 free ATMs become fee-charging
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
12th August 2011
Swiss / German withholding tax - template for future?
Interview
Switzerland and Germany have reached an agreement for a withholding tax (Abgeltungssteuer) to be applied against assets of German citizens in Swiss banks. The deal still requires ratification from the Swiss Federal Council and the German federal government with a planned implementation of early 2013. The agreement is very important for several reasons. First, many estimates suggest that the assets held by German citizens in Swiss private banks are greater than the assets held by any other nationality with the possible exception of the Swiss. Second, this deal could well form a template for agreements with many other nationalities.
There are two rates of tax, a 'catch up' rate of 34% which is for regularisation - to make up for some of the tax not paid previously. On an ongoing basis the tax rate for most clients is to be between 20% and 25%. Swiss banks are also to make an upfront payment of CHF 2bn (€1.9bn £1.7bn $2.7bn ¥210bn Y17.6bn) to be offset against tax receipts collected.
Switzerland sees the deal as a victory in that it ends the threat of legal and political action against the country and its banks. It is also able to claim that there is no breach in financial privacy (whilst names are shared details of the financial transactions and balances are not). Importantly it is also practical to implement. The Swiss Bankers Association believes the cost to banks will be "mid-three digit million Swiss Franks". Patrick Odier, Chairman of the SBA, says of the agreement: "Overall, my assessment of the tax agreement is positive. It is an important milestone for the Swiss financial centre. As a banker, I am especially grateful that clients have been offered a fair solution for regularising their assets. As promised, the Swiss banks have abided by their duty of fiduciary responsibility to their longstanding clients."
Swiss private banks potential loss of significant business from the crumbling of the tax haven status of the country is for the moment at least countered by the safety benefit Swiss banks can offer. At a time when people have concerns about banks in many countries, and what will happen to the currency of other countries they are based in, few question the soundness of the Swiss banks or the security of the Swiss Frank.