𝐓𝐡𝐞 𝐩𝐮𝐫𝐞𝐬𝐭 𝐟𝐨𝐫𝐦 𝐨𝐟 𝐚𝐫𝐭: 𝐃𝐄𝐀𝐋𝐒
Sharpen your gut feeling
with the magic 10/20 tax thresholds and AI
Deals are an art form.
They are difficile.
And every detail counts.
You show your cards too early
You miss an indemnity clause
And what seemed closed
is far from clean
I have been part of many deals – with global insurers, private banks, commodities traders, pharmaceutical companies, and smaller ventures with limited resources.
The key lesson was always the same: it is taxes and gut feeling that make or break a deal.
It is tempting to quote
the trader from the screen
or the lawyer who wins by instinct or a lucky hand in poker
But deals do not follow scripts
They follow logic
timing
and form
That is why in today’s 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫 𝐒𝐮𝐧𝐝𝐚𝐲 𝐒𝐮𝐦𝐦𝐞𝐫 𝐄𝐝𝐢𝐭𝐢𝐨𝐧 𝐢𝐧 𝐓𝐡𝐞 𝐀𝐫𝐭𝐬 𝐚𝐧𝐝 𝐓𝐚𝐱𝐞𝐬
we are looking at the magic of the 10/20 thresholds
In Swiss tax law, these two numbers change the nature of your deal.
𝐀𝐭 𝟏𝟎 𝐩𝐞𝐫𝐜𝐞𝐧𝐭
you enter the world of qualified participations
▪️ For private investors, dividend income becomes partially tax-exempt under the "Teilbesteuerungsverfahren"
▪️ For corporate shareholders, the participation relief (Beteiligungsabzug) may apply
𝐀𝐭 2𝟎 𝐩𝐞𝐫𝐜𝐞𝐧𝐭
you enter the risk zone of indirect partial liquidation
If a private individual sells shares to a company
and the target distributes substance within five years
part of your tax-free gain may be reclassified as taxable income
𝐀𝐧𝐝 𝐢𝐟 𝐲𝐨𝐮 𝐚𝐫𝐞 𝐮𝐬𝐢𝐧𝐠 𝐜𝐨𝐧𝐯𝐞𝐫𝐭𝐢𝐛𝐥𝐞 𝐥𝐨𝐚𝐧𝐬
both thresholds matter.
Be sure to ask your borrower:
▪️If your loan is part of an overall financing amount above CHF 500k
▪️And issued to over 10 lenders at identical conditions
▪️Or to over 20 lenders at varying conditions
Should this be the case,
the loans may be requalified as bonds
bringing withholding tax consequences into play on interest payments
and potentially on the conversion discount.
𝐀𝐈 𝐜𝐚𝐧 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐲𝐨𝐮𝐫 𝐠𝐮𝐭 𝐟𝐞𝐞𝐥𝐢𝐧𝐠
if you give it the right input:
▫️ Are you the buyer or seller?
▫️ Are you acting privately or via a company?
▫️ Who is the counterparty?
▫️ What is the participation percentage (10/20% relevant)?
▫️ Are convertible loans involved – and is conversion planned?
▫️ Will reserves be distributed after the transaction?
Then ask:
Are there tax consequences under Swiss law
due to the participation structure
or a risk of indirect partial liquidation?
AI can support your gut feeling.
𝐁𝐮𝐭 𝐢𝐟 𝐲𝐨𝐮𝐫 𝐝𝐞𝐚𝐥 𝐢𝐬 𝐭𝐚𝐤𝐢𝐧𝐠 𝐬𝐡𝐚𝐩𝐞 – 𝐭𝐡𝐢𝐬 𝐢𝐬 𝐭𝐡𝐞 𝐦𝐨𝐦𝐞𝐧𝐭 𝐭𝐨 𝐭𝐚𝐥𝐤 𝐭𝐨 𝐮𝐬.
Because when it comes to structure and consequences, details decide.
Stéphanie Fuchs Consulting – Keeping you in the driver’s seat with your taxes 🏎️
#InvestorSunday #SwissTax #IndirectPartialLiquidation #ParticipationRelief #PartialTaxation #ConvertibleLoans #NonBankRules #PrivateInvestors #TaxStructuring #StéphanieFuchsConsulting #artofthedeal