Executive Summary

The Federal Tax Administration (ESTV) regularly publishes updated notices on administrative practice in the areas of transfer tax, withholding tax, supplementary tax and income tax. The current notice 029-S-2026 regulates the tax treatment of employee participation plans and implements a Federal Court decision with fundamental consequences for companies and their employees. Additional notices concern technical changes for data providers as well as international minimum taxation rules according to OECD standards.

Persons

  • Federal Tax Administration (ESTV)
  • Federal Court

Topics

  • Employee participation plans
  • Transfer tax
  • Supplementary tax (GloBE rules)
  • Withholding tax
  • International taxation

Clarus Lead

The Federal Court has, through judgments 9C_168/2023 and 9C_176/2023, established new rules for the tax treatment of employee participation plans. For decision-makers, this means: No transfer tax is due on free share transfers (such as those following Performance Share Units or free shares) – a significant relief for companies. The Federal Tax Administration is adjusting its administrative practice as of 25 November 2024. Additionally, the ESTV is establishing new international minimum taxation provisions (supplementary tax) in accordance with OECD requirements and the change of data providers for the classification of taxable securities.

Detailed Summary

Employee Participation Plans and Transfer Tax

The main notice 029-S-2026 clarifies the impact of the Federal Court decision on six case categories:

  1. Performance Share Units (PSU) / Restricted Share Units (RSU): Upon allocation of shares after expiration of a holding period (vesting), no transfer tax is due, as the transfer is made without consideration.

  2. Shares at preferential prices: Transfer tax applies only to the amount actually paid; the benefit from the discount is not subject to the tax, but must be taxed as a fringe benefit.

  3. Free shares: Cost-free distributed shares are exempt from transfer tax, as no consideration is provided.

  4. Option plans: Purchase options themselves are not taxable; transfer tax applies only upon exercise and is calculated based on the exercise price paid, not on the benefit realized.

  5. Partial compensation in shares: Here, transfer tax is due on the agreed consideration.

  6. Primary market issuances: New shares that meet exemption requirements are tax-free.

International Tax Rules and Minimum Taxation

The ESTV clarifies the application of OECD model provisions on global minimum taxation (GloBE):

  • Supplementary tax of 15%: Multinational groups with business activities in Switzerland must pay a national supplementary tax from 1 January 2024 onwards if the effective tax rate falls below 15%. The ESTV regulates how residual taxes (withholding taxes) on distributions are credited.

  • Permanent establishments: Permanent establishments of foreign companies are treated as business units and are subject to GloBE rules; domestic permanent establishments are attributed to the parent company.

Technical and Administrative Changes

  • Data providers: Refinitiv SA withdraws as a recognized data provider for transfer tax classification as of 1 January 2026. Only SIX Financial Information AG is officially recognized.

  • Withholding tax: New rules for the declaration of capital contribution reserves (CER) and clarifications on statute of limitations periods.

  • Payment traffic: The QR invoice has completely replaced orange and red payment slips since October 2022.

Key Findings

  • Transfer tax is waived for free share transfers in employee participation plans – a significant tax benefit as of 25 November 2024.

  • Supplementary tax (minimum taxation) according to OECD standards applies in Switzerland from 2024 onwards; multinational groups with low tax rates must make additional payments.

  • SIX Financial Information AG is the only recognized data provider for securities classification from 2026 onwards – Refinitiv is discontinued.

Critical Questions

  1. Evidence & Data Quality: How will employees and employers be informed about the new transfer tax regulations? Are there transition rules for employee participation already granted?

  2. Conflicts of Interest & Incentives: Do large groups with existing employee participation plans benefit disproportionately from the new regulation, while small companies face administrative hurdles?

  3. Causality & Alternatives: Does the new transfer tax practice actually lead to more employee participation, or are administrative requirements still too high? Which countries have implemented similar relief measures?

  4. Feasibility & Risks: How quickly can companies adapt their compliance processes to the SIX data provider? Is there a transition period for switching from Refinitiv?

  5. International Impact: Does OECD minimum taxation lead to additional burdens for Swiss corporate groups with foreign subsidiaries, or is double taxation avoided through credit principles?

  6. Legal Certainty: Can companies for matters already assessed prior to 25 November 2024 rely on the new practice, or does grandfathering apply?

  7. Data Protection & Operationalization: How are the classification requirements of SIX Financial Information AG made accessible to small and medium-sized securities traders?

Sources

Primary Source: Notices of the Federal Tax Administration (ESTV) – Collection of Current Administrative Practice

Supplementary Sources:

  1. Federal Court – Judgments 9C_168/2023 and 9C_176/2023 (25 November 2024)
  2. OECD – GloBE model provisions on global minimum taxation
  3. Federal Act of 27 June 1973 on Stamp Duties (StG; SR 641.10)
  4. Ordinance of 22 December 2023 on Minimum Taxation of Large Corporate Groups (MindStV; SR 642.161)

Verification Status: ✓ 05.02.2026

This text was created with the assistance of an AI model. Editorial responsibility: clarus.news | Fact-check: 05.02.2026