Switzerland eyes tax break for hedge fund managers
Switzerland plans to give tax breaks in an attempt to lure hedge fund managers from New York and London.8 September 2008
BERN -- Switzerland plans to give tax breaks to hedge fund managers in a bid to lure them to the Alpine country from New York and London, a senior finance official said Friday.
The move would see the total tax burden for managers of hedge funds and other private equity companies drop to 15 to 20 percent overall, roughly the same as in London and New York, said Peter Siegentaler, director of the Swiss Federal Finance Administration.
The managers of such funds currently pay 40 to 50 percent tax in Switzerland, making it less attractive for them to base their business here.
The change will be made by reclassifying the way management's investment profits and management fees are classified.
It has to be approved by the heads of Switzerland's cantonal (state) tax departments, but will not require new legislation, Siegentaler said.
Switzerland could gain thousands of jobs if the proposal is accepted, said Urs Roth, chief executive of the Swiss Bankers Association.
[AP / Expatica]