<h3>Juso Estate Tax Initiative</h3>
<p>On December 13, 2024, the Federal Council adopted the statement on the popular initiative submitted by the JUSO “For a social climate policy &#8211; fairly financed through taxation (Initiative for a future)”. The initiative calls for the introduction of an estate and gift tax at the federal level. The tax rate would be 50% and levied for estates exceeding a one-time de-minimis threshold of CHF 50 million. The tax is designed as an estate tax and does not provide for any exceptions. The tax revenue is to be used for the “socially just fight against the climate crisis” and the “necessary transformation of the economy as a whole”.</p>
<p>A transitional provision stipulates that the Federal Council should implement the initiative by means of an ordinance within three years of its acceptance. The ordinance is to be applied retroactively to the day the initiative was accepted.</p>
<h3>Validity of the Initiative</h3>
<p>In its statement, the Federal Council first concludes that there is no reason to declare the initiative invalid. In light of previous practice, there is no violation of the principle of unity of matter, since the introduction of special-purpose taxes by means of a popular initiative has always been approved by Parliament.</p>
<p>The Federal Council does note, though, that it views the retroactive taxation of inheritances and gifts, as called for by the initiative, as questionable from a national policy perspective. However, the retroactive effect is explicitly desired by the initiative and would have to be observed as new constitutional law if it were to be accepted. The initiative also has a certain anticipatory effect due to the associated uncertainty, since potentially affected persons leave Switzerland before the vote or are prevented from moving here. Under current law, however, this is not sufficient to declare the initiative (partially) invalid.</p>
<h3>Measures Against Tax Avoidance</h3>
<p>The initiative calls for the enactment of provisions for the prevention of tax avoidance, in particular with regard to emigration from Switzerland. These must be enacted by the Federal Council within three years of the initiative&#8217;s acceptance.</p>
<p>The text of the initiative merely sets out the objective in this regard. The means by which this objective is to be achieved is thus left to the federal legislator and the federal government. They must adhere to the existing constitutional requirements (especially the principle of proportionality) when designing specific measures against tax avoidance.</p>
<p>The statement clarifies that a person&#8217;s emigration abroad cannot be readily classified as tax avoidance and sanctioned with tax consequences. Rather, in addition to the emigration, there must also be an action aimed at tax avoidance. The statement mentions a timely gift as an example in this regard.</p>
<p>The Federal Council also rejects an exit tax for the same reason. Besides, this would be disproportionate infringement of the freedom of establishment.</p>
<p>One possible measure against tax avoidance could be a post-emigration taxation right. This would mean that for a certain period after leaving Switzerland, the individual would be deemed to still be resident in Switzerland. However, the Federal Council makes it clear that this must be limited in time. It is suggesting a period of five years. In addition, the Federal Council points out that in such a case, Switzerland&#8217;s right of taxation may be restricted by double taxation agreements and that Switzerland has not concluded any agreement with any state that would allow it to enforce the tax claim abroad.</p>
<h3>No Retroactive Effect of Measures Against Tax Avoidance</h3>
<p>The initiative states that the ordinance to be issued by the Federal Council will apply retroactively to inheritances and gifts made after the initiative&#8217;s acceptance. However, this retroactivity only applies to the collection of estate and gift taxes for persons who have their residence in Switzerland at the time of death or the gift. The statement also clarifies that the measures required by the initiative to prevent tax avoidance <u>cannot</u> be retroactively enforced. These will only apply once the corresponding implementing provisions are in force, which the Federal Council must issue no later than three years after a possible acceptance of the initiative.</p>
<h3>No Need for a Pre-emptive Emigration Before the Voting Day</h3>
<p>It is highly commendable that the Federal Council clarifies in its statement that any measures against tax avoidance will not be implemented retroactively to the date of the vote. Should the initiative be accepted, taxpayers concerned can still leave Switzerland after the voting day without adverse tax consequences.</p>
<h3>Further Political Process</h3>
<p>The initiative will be discussed by the Economic Affairs and Taxation Committee (<em>WAK</em>) of the National Council on January 20, 2025, by the National Council as the first chamber in March and by the Council of States as the second chamber in the summer session. Parliament can therefore make its voting recommendation in June. The earliest possible voting date would therefore be November 30, 2025. If this timing is not feasible, the initiative would probably be put to the vote on March 8, 2026.</p>
<h3>Only Modest Revenue Would Be Expected From the Estate and Gift Tax at Stake</h3>
<p>In the statement, the Federal Council concludes, citing economic studies and an expert opinion it has obtained, that the revenue from the estate and gift tax demanded by the initiative is likely to be modest. Considering the tax losses in income and wealth taxes resulting from the potential emigration of the persons affected by the initiative, acceptance of the initiative would even lead to a significant net loss of revenue for the Federal government and the cantons.</p>


Homburger Bulletin

 Estate Tax Initiative – Mitigation of Negative Impact

<h3>Transfer Stamp Duty on M&amp;A Transactions</h3>
<p>The acquisition or sale of a company (share deal) is subject to the Swiss transfer stamp duty of 0.15% (domestic company) or 0.3% (foreign company) if a domestic securities dealer is involved in the transaction as a party or an intermediary.</p>
<p>The term «securities dealer» is defined in the Stamp Duty Act. In addition to domestic banks and brokers, domestic companies that hold more than CHF 10 m in securities (<em>e.g.</em>, participations) according to their last balance sheet are also considered securities dealers. This also applies to holding and intermediate holding companies if they show participations with a book value of CHF 10 m.</p>
<p>Foreign companies, on the other hand, are not considered securities dealers. If a domestic group acquires a participation through a foreign subsidiary from a foreign counterparty, neither party is a securities dealer. The transfer stamp duty is therefore only due if a securities dealer is involved in the transaction as an intermediary.</p>
<h3>Management Company as an Intermediary in an M&amp;A Transaction</h3>
<p>In addition to an investment bank, broker, or M&amp;A boutique, a group company that is a securities dealer can also be an intermediary according to the practice of the FTA and the case law of the Federal Supreme Court. This is always the case when the negotiation in the M&amp;A transaction is conducted by officers or employees of a group company that is a securities dealer.</p>
<p>If the group has a management company, the person responsible for the negotiation is usually employed by this company. The transfer stamp duty is therefore always due if this management company is a securities dealer.</p>
<p>If such a management company does not have securities (<em>e.g.</em>, participations) with a book value of CHF 10 m on its balance sheet, it is generally not considered a securities dealer. This is different if the management company&#8217;s activities primarily involve acting as an investment advisor or asset manager to facilitate the purchase and sale of securities (so-called commercial intermediary).</p>
<p>In recent years, the Federal Tax Administration (FTA) has had a very extensive understanding regarding the question of when a management company is considered a commercial intermediary and thus a securities dealer. In the practice clarification dated November 1, 2024, the FTA adjusts this practice. From now on, intermediary activities for a group company do not result in a company being classified as a commercial intermediary and thus as a securities dealer. Therefore, group-owned management companies that have less than CHF 10 m in securities on their balance sheet will no longer be considered intermediaries.</p>
<p>This practice clarification by the FTA is very welcome. It eliminates the disadvantage for group companies where the M&amp;A team is employed in a domestic management company compared to those with an M&amp;A team based abroad.</p>
<h3>Group Parent Company as Intermediary for the M&amp;A Transaction</h3>
<p>The group parent company is regularly a securities dealer for purposes of the transfer stamp duty because it holds participations with a book value of more than CHF 10 m. In its ruling of February 25, 2021, the Federal Supreme Court stated that the group parent company is always an intermediary in terms of the transfer stamp duty if it acts like a proof or intermediary broker.</p>
<p>In its practice clarification dated November 1, 2024, the FTA clarifies that there is particularly no proof or intermediary brokerage if the group parent company commissions an independent investment bank with a transaction (purchase or sale of a participation) and compensates it for this, or if the negotiations are conducted by a person who does not belong to the domestic holding company.</p>
<p>Thus, the domestic group parent company is also generally not considered an intermediary for M&amp;A transactions. This clarification is also very welcome, as there has been some uncertainty in this regard since the Federal Supreme Court ruling of February 25, 2021.</p>
<h3>Effective Date</h3>
<p>The practice clarification of the FTA dated November 1, 2024, will be applied immediately and will apply to all currently pending open cases with the FTA. However, retroactive application is excluded.</p>
<h3>Conclusion</h3>
<p>Through the clarification of practice, it is possible for domestic corporations to continue concentrating their M&amp;A activities in a domestic management company without this automatically leading to transfer stamp duty consequences for the acquisition and sale of participations, provided that the purchasing or selling company itself is not a securities dealer. This is particularly relevant with regard to the acquisition of participations in foreign companies, as these are usually acquired through foreign holding companies. This clarification is very welcome, as it eliminates the disadvantage for Swiss multinationals in international M&amp;A activities.</p>


Homburger Bulletin / Cash-or-Title Dividend (COTD)

Transfer Stamp Duty for Intra-Group Intermediaries

<h3>Important clarification regarding Juso inheritance tax initiative</h3>
<p>The Young Socialists party has submitted an initiative to introduce a Federal inheritance tax. The initiative will be put to the vote in 2026 at the earliest. The tax demanded by the initiators is an inheritance tax of 50%, with a tax-free amount of CHF 50 million being applied. The tax revenue would have to be used to combat the climate crisis.</p>
<p>Although polls show that the chances of the initiative being accepted are negligible, it has caused a certain amount of uncertainty among the taxpayers concerned. The reason for this is the measures demanded by the initiators to prevent tax avoidance through relocation.</p>
<p>In interpellation 24.3763 submitted on June 14, 2024, National Councillor Schneeberger called on the Federal Council to clarify which specific measures are being considered to prevent tax avoidance in order to quickly clarify the potential implementation of the initiative.</p>
<p>In its response published today, the Federal Council states that it considers the retroactive taxation of estates and gifts demanded by the initiators to be highly problematic in terms of Government policy. It also makes it clear that it will comment in detail on the interpretation of the popular initiative and its possible implementation in the event of its adoption in the dispatch by the beginning of February 2025 at the latest.</p>
<p>The Federal Council has now already announced that the implementation must in any case comply with international law and the Constitution. An exit tax is therefore out of the question. The relocation of a person abroad cannot simply be qualified as tax avoidance and sanctioned with tax consequences. At best, a retroactive right of taxation would be conceivable in the case of a gift made shortly after moving away. However, the Federal Council emphasizes that Switzerland would not be able to enforce such taxation abroad.</p>
<p>The Federal Council also states that the introduction of tax avoidance measures must always comply with constitutional and international law requirements and, in particular, the principle of proportionality.<br />
According to the Federal Council, it is also questionable whether a retroactive entry into force of the inheritance and gift tax would also apply to the required measures for tax avoidance if the initiative was accepted.</p>
<p>The Federal Council&#8217;s response makes it clear that a precautionary departure from Switzerland before the day of the vote is not necessary. Even in the unlikely event that the initiative was accepted, it would still be possible to leave Switzerland after the day of the vote without incurring the inheritance tax demanded by the Juso.</p>
<p>With its response to the Schneeberger interpellation, the Federal Council has provided clarity on this issue, which is extremely gratifying. It has thus sent an unmistakable signal that it is not necessary to leave Switzerland before the voting day.</p>
<p>In view of the Federal Council&#8217;s clear response, we do not consider it necessary for taxpayers to plan to leave Switzerland at this stage. According to current polls, the initiative has no chance. If, contrary to expectations, the initiative was accepted, it would still be possible to leave Switzerland after the day of the vote without any negative tax consequences. However, we recommend reviewing the situation again in February after publication of the message.</p>


RZ_Preview_VST_SB_02

Federal Council rejects exit tax

Financing and Investment Products

Homburger News

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Homburger advised UBS in connection with PolyPeptide's EUR 151 m revolving credit facility agreement

<p>On May 23, 2025, PolyPeptide announced that it has secured additional financing of EUR 40 m under its revolving credit facility (RCF) increasing the available capital commitments to a total of EUR 151 m, with UBS as coordinator and agent, and together with Danske Bank and Zürcher Kantonalbank each as mandated lead arranger and lender.</p>
<p>PolyPeptide is a global Contract Development &amp; Manufacturing Organization (CDMO) specializing in the development and manufacturing of peptide- and oligonucleotide-based active pharmaceutical ingredients for the biotech and pharmaceutical industries.</p>
<p>Homburger advised UBS and the other banks with regard to all Swiss legal aspects of the financing transaction. The Homburger team was led by Jürg Frick and included Nathalie Scherrer (both Financing and Investment Products) and Stefan Oesterhelt (Tax).</p>


Corporate / M&A

Capital Markets

Financial Market Regulation

<p>On May 27, 2025, a consortium led by EQT, consisting of Sunshine SwissCo GmbH, the Abu Dhabi Investment Authority (ADIA) and Auba Investment Pte. Ltd. (all acting as the Sellers), announced the launch of an accelerated bookbuilding process to professional investors in Switzerland and to qualified investors outside Switzerland, which led to the successful placement of 19,031,811 shares in Galderma Group AG (Galderma) at a price of CHF 97.75 per share (the Placement), raising a total of ca. CHF 1,860 m in total.</p>
<p>Galderma participated in the Placement by agreeing to repurchase 2,378,976 shares for a total consideration of ca. CHF 233 m, at the same price per share determined by the bookbuilding process.</p>
<p>The Sellers will remain shareholders of 40.2% of the share capital of Galderma. EQT’s representation on the board of directors of Galderma remains unchanged as a result of the Placement. Such Placement will broaden Galderma&#8217;s shareholder base and free float. In connection therewith, the Sellers have agreed to a 90-day lock-up period, subject to certain customary exceptions, with respect to their remaining holding in Galderma.</p>
<p>The Placement is expected to be settled on June 2, 2025. Following the Placement, no changes to the Galderma board of directors and its governance are envisioned.</p>
<p>Homburger acted as transaction counsel to EQT.</p>
<p>The Homburger team was led by Frank Gerhard (Corporate / M&amp;A, Capital Markets) and included Margrit Marti, Estelle Piccard, Héloïse de Jamblinne and Lucas Forrer (all Corporate / M&amp;A, Capital Markets), Micha Fankhauser (Financial Market Regulation) as well as Stefan Oesterhelt (Tax).</p>


Homburger advises EQT on the sale of 8.0% of Galderma's share capital via an accelerated bookbuilding process

<p>Homburger acted as counsel to UBS Switzerland AG as mandated lead arranger, coordinator, agent, security agent and original lender in connection with the refinancing of the Sequotech Group, an IT services group owned by multi-family office Verium AG and Sequotech’s management team.</p>
<p>Homburger advised UBS Switzerland AG, Migros Bank AG and Zürcher Kantonalbank with regard to all legal aspects of the financing transaction.</p>
<p>The Homburger team was led by Jürg Frick and included Nathalie Scherrer and Jannis Zafeirakos (all Financing and Investment Products) as well as Stefan Oesterhelt (Tax).</p>


Stefan
Oesterhelt

Homburger advised UBS in connection with PolyPeptide's EUR 151 m revolving credit facility agreement

Homburger advises EQT on the sale of 8.0% of Galderma's share capital via an accelerated bookbuilding process

Homburger advised UBS Switzerland AG, Migros Bank AG and Zürcher Kantonalbank on the refinancing of the Sequotech Group

Estate Tax Initiative – Mitigation of Negative Impact

Transfer Stamp Duty for Intra-Group Intermediaries

Federal Council rejects exit tax

Blockchain & Cryptocurrency Regulation 2025: Switzerland

Fintech 2025: Switzerland

Real Estate Investment Structure Taxation: Switzerland

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StefanOesterhelt

Homburger advised UBS in connection with PolyPeptide's EUR 151 m revolving credit facility agreement

Homburger advises EQT on the sale of 8.0% of Galderma's share capital via an accelerated bookbuilding process

Homburger advised UBS Switzerland AG, Migros Bank AG and Zürcher Kantonalbank on the refinancing of the Sequotech Group

Estate Tax Initiative – Mitigation of Negative Impact

Transfer Stamp Duty for Intra-Group Intermediaries

Federal Council rejects exit tax

Blockchain & Cryptocurrency Regulation 2025: Switzerland

Fintech 2025: Switzerland

Real Estate Investment Structure Taxation: Switzerland

Join the Team

Stefan Oesterhelt

Career

Languages

Bar Registration

Teams

Stefan
Oesterhelt