Zurich woos London hedge funds
Switzerland plans special 10% tax rate for hedge fund managers
London faces a significant challenge to its status as the leading base for
hedge funds, as Switzerland mulls offering the sector a special 10% tax rate.
The Daily Telegraph
reports that Swiss finance minister
Hans-Rudolf
Merz has met with Swiss banking leaders to build a plan to
challenge the dominance of the
City of
London.
The Swiss banking federation has proposed a 10% tax on elite hedge fund
managers, effectively cutting the marginal rate by 35 percentage points.
‘It’s an idea I’m trying carrying around,’ said Merz. ‘The financial
marketplace is of enormous importance to our country. I know that we have a
disadvantage in taxes. We understand the problem, and we have to solve it.’
Further reading:
EU goes toe to toe with Swiss over corporate tax system
FSA throws out ‘light’ hedge fund regime
Hedge fund managers under Revenue spotlight