You should limited the issuance of convertible notes. In Switzerland there the so called 10/20/100 rule describing the three thresholds when an issuer has to pay 35 percent withholding taxes on interest payments. In order to avoid paying withholding tax the issuer should not issue convertible notes to less than 10 non-bank investors on the same issuance terms with fixed amounts totalling over CHF 500’000 and (2) should not issue convertible notes to less than 20 non-bank investors in total, independent of the issuance terms with investment amounts totalling over CHF 500’000.
What do I need to check when issuing a convertible note in Switzerland?
All FAQs Published at: 2024-02-05