The Swiss Federal Tax Administration (#SFTA) has published the safe haven interest rates applicable for the year 2023 in its updated annual circular letters No. 203 and 204. The rates are for loans in #Swiss #Francs (CHF) and in foreign #currencies to and from shareholders or related parties
If the interest rates actually charged are not among those listed below, further evidence is required to show that they are in line with market interest rates and on market terms.
These rates are in fact used by the SFTA to determine the arm’s length nature of interest on intra-group loan receivables or payables and provide a level of tax certainty from a Swiss tax perspective.
The rates for 2023 apply retroactively as of 1 January 2023.
SWISS FRANCS RATES___________________________________________________
If financed by equity capital | 1.50% (previously was 0.25%) |
If financed by debt capital | own financing + costs + spread of 0.50%* or 0.25%* but in total at least 1.50%
* 0.5% for loans up to CHF 10m, 0.25% for loans exceeding CHF 10m
|
For Swiss trading or production companies
Loan < 1M Chf | 3.75% |
Loan > 1M Chf | 2.25% |
For Swiss holding or asset management companies
Loan < 1M Chf | 3.25% |
Loan > 1M Chf | 2.00% |
Up to the amount of the 1st mortgage (i.e. 2/3 of the market value of the property)
Housing and Agriculture | 2.25% |
Industry and Commerce | 2.75% |
On the remaining part:
Housing and Agriculture | 3.00% |
Industry and Commerce | 3.50% |
In general, Swiss borrowers may not pay more than the interest rate indicated; however, one should always take into account that for the calculation of the limits the loans from related parties must be added.
FOREIGN CURRENCIES___________________________________________________
The SFTA published also the guidelines for the interest calculation for foreign currencies (“Circular Letter No. 204”).
The safe haven interest rates in the table below are to be applied as a minimum interest rate to loans to related parties. For loans from related parties the same spread as for loans in Swiss francs can be added.
COUNTRY | Valuta | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
European Union | EUR | 0.75 | 0.75 | 0.50 | 0.25 | 0.50 | 3.00 |
USA | USD | 3.00 | 3.00 | 2.25 | 1.25 | 2.00 | 3.75 |
Australia | AUD | 3.00 | 3.00 | 1.50 | 1.00 | 1.50 | 4.25 |
Brazil | BRL | n.a. | 9.50 | 6.00 | 5.75 | 11.25 | 12.75 |
Bulgaria | BGN | 1.00 | n.a. | n.a. | n.a. | n.a. | n.a. |
Canada | CAD | 2.75 | 3.25 | 2.50 | 1.50 | 2.50 | 3.75 |
Czech Republic | CZK | 1.75 | 3.00 | 2.50 | 1.50 | 3.00 | 5.50 |
China | CNY | 3.50 | 4.25 | 3.75 | 3.75 | 3.75 | 3.00 |
South Korea | KRW | 2.50 | 2.50 | 2.00 | 2.00 | 2.00 | 3.25 |
Denmark | DKK | 0.75 | 1.00 | 0.75 | 0.50 | 0.50 | 3.25 |
United Arab Emirates | AED | 3.25 | 3.25 | 2.75 | 2.00 | 2.50 | 4.00 |
Japan | JPY | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 |
Great Britain | GBP | 1.75 | 1.75 | 1.50 | 1.00 | 1.25 | 5.25 |
Hong Kong | HKD | 2.25 | 3.25 | 2.50 | 1.50 | 1.50 | 4.25 |
India | INR | n.a. | 7.75 | 7.50 | 6.25 | 6.25 | 7.00 |
Israel | ILS | n.a. | 1.25 | n.a. | n.a. | 1.25 | 3.25 |
Malaysia | MYR | 4.25 | 4.25 | 4.00 | 3.00 | 3.50 | 3.75 |
Norway | NOK | 1.75 | 2.50 | 2.50 | 1.50 | 1.50 | 3.50 |
New Zealand | NZD | 3.00 | 3.00 | 1.50 | 1.00 | 2.25 | 4.75 |
Poland | PLN | 2.75 | 3.00 | 2.50 | 1.50 | 1.50 | 7.00 |
Romania | RON | 4.50 | 4.50 | n.a. | n.a. | 4.50 | n.a. |
Russia | RUB | 8.25 | 9.75 | 8.00 | 6.50 | 8.00 | n.a. |
Singapore | SGD | 2.25 | 2.75 | 2.25 | 1.25 | 1.50 | 4.00 |
South Africa | ZAR | 7.50 | 8.50 | 7.75 | 5.75 | 6.50 | 8.75 |
Sweden | SEK | 0.75 | 1.00 | 0.75 | 0.75 | 1.00 | 3.25 |
Thailand | THB | 2.50 | 2.50 | 2.00 | 1.50 | 1.50 | 3.00 |
Hungary | HUF | 1.50 | 1.50 | 1.50 | 2.00 | 3.50 | 11.00 |
n.a.: not available
SOURCE: https://www.estv.admin.ch/