The granting of interest-free or insufficiently interest-bearing advances or loans to participants or third parties related to them constitutes a payment in kind. This shall also apply to translated interest which is paid on the basis of obligations to participants or third parties close to them.
The following two FTA circulars provide information on the appropriate interest rate for advances or loans in Swiss francs and foreign currencies:
- Tax-deductible interest rates 2020 for advances or loans in Swiss francs (FTA, circular dated 3 February 2020)
- Tax-deductible interest rates 2020 for advances or loans in foreign currencies (FTA, circular dated 4 February 2020)
All FTA circulars are available here.
