Extension of the temporary exemption from withholding tax for “too-big-to-fail” Swiss bonds


Clearstream Bank1 informs clients that the exemption from withholding tax currently applicable on interest on Swiss bonds subject to the “too-big-to-fail” rules which is in place for contingent convertible bonds and impaired bonds issued from 2013 as well as Bail-in bonds issued from 2017 and subject to expiration by the end of 2021, will be extended until the end of 2026 from

January 1, 2022

Impact on customers

Interest on the following Swiss bonds remains exempt from withholding tax:

  • Conditional Convertible Bonds and Depreciated Bonds in accordance with Articles 11 to 13 of the Banking Law issued by Swiss banks and approved by the Swiss banking regulator FINMA on the credit of the bond against the required equity, issued between January 1, 2013 and December 31, 2026.

  • Bail-in bonds which are bonds issued by Swiss banks for which measures may be ordered in accordance with Articles 28-32 of the Swiss Banking Law provided that:

    • the obligation may be reduced or converted into equity through a restructuring plan in accordance with article 31 para. 3 of the Swiss banking law,

    • the Swiss banking regulator FINMA has approved the obligation to meet regulatory requirements, and

    • the bond is issued between January 1, 2017 and December 31, 2026 or during this period a change of issuer has taken place or is taking place.

Neither Clearstream Banking nor the national custodian UBS Switzerland AG publishes lists of obligations fulfilling the above criteria for exemption from withholding tax. This information is available either in the prospectus of a bond or, after payment of interest, in the quotation list of the Federal Tax Administration.

In addition, Clearstream does not assess whether the conditions for an exemption from withholding tax according to the above criteria for a specific obligation could be met or not; interest payments are credited as they are received by issuers who are responsible for withholding tax.

More information

For more information, please contact Clearstream Banking Tax Support, Clearstream Banking Customer Services or your Relationship Officer.

————————————————– –
1. Clearstream Banking refers collectively to Clearstream Banking SA, whose registered office is at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered in the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Clients AG using creation accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the B register of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.

Previous Turkish government pledges to boost pound amid currency crisis
Next Joby completes the acquisition of radar developer Inras GmbH | Your money