This page tells international organisations (IO), permanent missions (PM), and their staff members how and under what conditions they can apply for a refund of withholding tax and reimbursement of stamp duty.
Tax treatment of Withholding tax and Stamp duty
The permanent missions in Geneva, the international organisations in Switzerland and their staff members benefit from a certain number of tax privileges. The purpose of the following instructions is to provide them with information about the administrative and procedural rules that apply in tax matters related to withholding tax and stamp duty.
1. Withholding tax (IO)
Reimbursement of withholding tax to international organisations and their staff members
1.1. General principles
According to article 28, paragraph 2 of the federal Law of 13 October 1965 on withholding tax (WHTL; SR 642.21), International organisations and civil servants employed by them who are domiciled in Switzerland are entitled to reimbursement of withholding tax if, at at the moment the taxable benefit is due, the legal provisions, conventions or commun usage exempt them from the payment of cantonal tax on securities and assets held in a bank and on the income derived from these.
In order to mitigate the disadvantage represented by the loss of interest on the amounts of withholding tax to be reimbursed, article 65 and article 65a of the Ordinance on Withholding Tax (WHTO; RS 642.211) allow for reimbursements in instalments if the beneficiary can reasonably establish that his entitlement to reimbursement amounts to at least CHF 4,000.00 for the entire year. The instalments are paid at the end of each of the first three quarters (distributed according to the due dates) and must correspond to a maximum of 75% of the total projected withholding tax for the year in question.
1.2. Procedure
The withholding tax is not exempted at the source. A request for reimbursement must be submitted in writing. The request may be submitted at the earliest after the end of the calendar year in which the taxable benefit falls due (art. 29 para. 2 WHTL).
1.3. International organisations
International organisations must request the reimbursement of the withholding tax in writing from the Swiss Federal Tax Administration (see details below). The request for reimbursement shall be made on form 25 and submitted together with the supporting documents or online.
1.4. Members of the senior management (holders of a "B" legitimation card) – High ranking officials (holders of a "C" legitimation card)
Those persons enjoying diplomatic privileges and immunities are exempt in Switzerland from taxation on their income and assets as well as on remuneration from employment, and on immovable property and the revenue that it provides. On the basis of article 28, paragraph 2 WHTL, they are entitled to reimbursement of the withholding tax. The request for reimbursement shall be made on form 25 and submitted together with the supporting documents or online. However, these officials are not entitled to claim relief from foreign withholding taxes on income from movable assets received from foreign countries with which Switzerland has concluded a double taxation agreement (DTA).
1.5. Officials in the professional category (holders of a "D" legitimation card) – Officials in general services (holders of an "E" legitimation card)
Such persons are usually exempt from taxation on remuneration from employment and are subject to the normal taxation in Switzerland on their immovable property and the revenue that it provides. If, however, such persons are entirely exempt in a particular canton, they are entitled to reimbursement of the withholding tax on the basis of articles 21, 22 and 23 WHTL. The request for reimbursement must be made in writing to the tax authority of the canton in which they were domiciled at the beginning of the calendar year that follows the due date of the taxable income (cf. art. 30, par. 1 WHTL). These officials are only entitled to reimbursement of the additional US withholding tax and to the benefits of the DTAs concluded by Switzerland if they are considered to be Swiss residents for income and wealth tax purposes.
1.6. Domicile
Only those persons domiciled in Switzerland are entitled to reimbursement of the withholding tax. Persons living abroad are still subject to withholding tax unless there is a DTA between Switzerland and their State of residence (which also implies that the persons in question are subject to ordinary taxation in the State of residence).
1.7. Extinction of the right to reimbursement
The request for reimbursement must be made within 3 years after the expiry of the calendar year during which the benefit falls due. After this period, the right to reimbursement expires (art. 32 WHTL).
2. Withholding tax (PM)
Reimbursement of withholding tax to permanent missions and their staff members.
2.1. General principles
According to article 28 WHTL :
- Foreign States are entitled to the reimbursement of withholding tax deducted from the interest earned on assets they have placed in Swiss banks for the exclusive use of their diplomatic and consular representations.
- The members of diplomatic representations are entitled to reimbursement of the withholding tax on securities and assets held in a bank and on the earnings from these, insofar as the legal provisions, conventions or common usage exempts them from payment of cantonal taxes on securities and assets held in a bank and on the earnings from these.
- Reimbursement will be denied to foreign States that do not observe reciprocity, as well as to the members of their diplomatic and consular representations.
2.2. Procedure
The withholding tax is not exempted at the source. A request for reimbursement must be submitted in writing. The request may be submitted at the earliest after the end of the calendar year in which the taxable benefit falls due (art. 29 para. 2 WHTL).
The permanent missions, Heads of mission, diplomatic agents and administrative and technical staff members (holders of a "B", "C" and "D" legitimation card) must request the reimbursement of the withholding tax in writing from the Swiss Federal Tax Administration (see details below). The request for reimbursement shall be made on form 25 and submitted together with the supporting documents or online.
2.3. Domicile
Only those persons domiciled in Switzerland are entitled to reimbursement of the withholding tax. Persons living abroad are still subject to withholding tax unless there is DTA between Switzerland and their State of residence (which also assumes that the persons in question are subject to ordinary taxation in the State of residence).
2.4. Extinction of the right to reimbursement
The request for reimbursement must be made within 3 years after the expiry of the calendar year during which the benefit falls due. After this period, the right to reimbursement expires (art. 32 WHTL).
3. Stamp duty
Reimbursement of stamp duty to the permanent missions (PM), international organisations (IO) and their members of personnel.
3.1. Stamp duty on insurance premiums
The following are exempt from the payment of the federal stamp duty as applied to mandatory insurance plans in Switzerland (art. 21 of the federal Law of 27 June 1973 on stamp duties (SDL; SR 641.10):
- Permanent missions and international organisations,
- Heads of mission (PM) and members of the senior management (IO) ("B" legitimation card),
- Diplomatic agents (PM) and high ranking officials (IO) ("C" legitimation card),
- Administrative and technical members of personnel (PM) ("D" legitimation card).
This exemption is applicable only to premiums for property insurance and for third party liability insurance for motor vehicles, as well as to premiums for household insurance in the cantons of Vaud, Fribourg, Jura and Nidwalden.
International organisations may be exempted from federal indirect taxes under the terms of the organisation’s constituting treaty or headquarters agreement. They are then exempt from stamp duty in general.
Staff life insurance is not covered by the abovementioned exemptions.
3.2. Stamp duty on securities transactions
Exempted from the payment of stamp duty are international organizations that can avail themselves of treaty provisions providing for such exemption (e.g., Article III, Section 9, of the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations adopted by the General Assembly of the United Nations on 21 November 1947).
3.3. Procedure
The federal stamp duty on insurance premiums is not exempted at the source, but on the basis of a written request for reimbursement to the Swiss Federal Tax Administration.
A specific form (PDF, 573 kB, 13.09.2024) provided for this purpose must be duly completed and signed by the policyholder or the insured person. This form must be accompanied by:
- For individuals: a copy of the legitimation card of the person requesting the reimbursement.
- copies of the invoices of the premiums concerned by the application. These invoices must contain the following information:
- Name and address of the insurer
- Policy Number
- The type of insurance (coverage of which risk)
- Period of insurance
- Amount of the premium and the amount of stamp duty levied and claimed in remittance
This form and the supporting documents can be sent by e-mail to the following address: estv.Diplomaten@estv.admin.ch
With regard to stamp duty levied on the trading of securities, only international organizations with an agreement providing for this possibility can claim an exemption. In this case, the international organization must ask the Federal Tax Administration for confirmation of the status of exempt investor, which must be presented to the securities dealer (Swiss bank) who must pay the stamp duty (see also point 53 of the SFTA Circular no. 12 (PDF, 460 kB, 10.10.2023) " Stamp duty on securities transactions" of 10.03.2011).
The bank must keep the supporting documents in order to be able to present them during an audit by the SFTA inspectors.
These requests must be sent to the Federal Tax Administration.
3.4. Statute of limitations
The right to reimbursement or exemption from stamp duty lapses after 5 years from the end of the calendar year during which it arose (art. 8 para. 4 of the Ordinance of 03.12.73 on Stamp Duty [TO]; SR 641.101).
4. Addresses
Reimbursement of withholding tax
Swiss Federal Tax Administration SFTA
DVS-RU / Team 3
Eigerstrasse 65
3003 Berne
Reimbursement of stamp duty (insurance premiums)
Swiss Federal Tax Administration SFTA
DVS-ER / Team 5
Eigerstrasse 65
3003 Berne
Exemption of stamp duty (trading of securities)
Swiss Federal Tax Administration SFTA
Team 5 (DVS-EP) – financial companies
Eigerstrasse 65
3003 Berne
Last modification 13.09.2024