BASEL: Switzerland’s Federal Department of Finance (FDF) is to cut the compensatory interest rate for the early payment of direct federal taxes.
According to the Swiss Federal Council, in recent years negative interest rates have prompted a growing number of taxpayers to voluntarily pay direct federal taxes before the payment deadline. In return they would receive compensatory interest at a rate of 0.25 percent for the period between when the payment was made and the date on which it was due.
However, in the face of continued low interest rates, the FDF has decided to fix the compensatory interest rate at zero for the 2017 calendar year. The Federal Council said that advance payments distort government accounts and make budgeting and financial planning more difficult.
