The case

Controversy over the proposed abolition of the stamp duty on equity (today’s NZZ, page 24). The article mentions the Federal Council’s (FC) response to a parliamentary interpellation (21.3922). The interpellation asks, among other things, how are similar financial activities (financial transaction tax, financial activity tax, financial stability contribution, etc.) taxed in other European countries? – Question 7.

In its statement of 11.08.2021, the Federal Council comments on question 7 in detail (see below). For more see link.

Question 7 – FC’s statement: A financial transaction tax (FTT) taxes the transfer of financial instruments (shares, bonds, collective investment schemes, foreign exchange, derivatives and structured products) between two parties. The concrete legal form varies greatly in the individual countries that apply an FTT. In 2021, in addition to Switzerland and Liechtenstein, Belgium, Finland (only over-the-counter transactions), France, Ireland, Italy, Malta (with very limited scope), Poland, Spain (since 16 January), the United Kingdom and Cyprus levy (a form of) FTT.

A Financial Activities Tax (FAT) taxes the profit and/or payroll of companies in the financial sector. In addition, special economic pensions (rent-taxing FAT) and/or profits from riskier activities (risk-taxing FAT) can be taxed. In 2021, Denmark, Iceland and Norway levy a FAT.

Financial Stability Contributions (FSC) are contributions levied on the balance sheet (liabilities or assets) of a financial institution. The contributions form a fund (the resources of which are to be used to finance rescue packages for the affected financial firms in the event of a future crisis in the financial sector). In 2021, Austria, Belgium, France, Greece, Hungary, Iceland, the Netherlands, Poland, Portugal, Slovenia, Sweden and the United Kingdom will levy an FSC.

Source: parlament (German)

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