As much as CHF47 billion – about 2.3% of total offshore assets under management in Switzerland – might be lost before the implementation of Switzerland’s new withholding tax agreements with Germany and the UK, due to withdrawals and tax payments, according to a new study.

Date: Dec 8, 2011

Tags: Switzerland, Tax

As much as CHF47 billion – about 2.3% of total offshore assets under management (AUM) in Switzerland – might be lost before the implementation of Switzerland’s new withholding tax agreements with Germany and the UK, due to withdrawals and tax payments, according to a new study.

The agreements may also result in a total loss of more than CHF1 billion in private banking industry revenues – about 4.4% of the total – due to outflow and margin reductions on remaining assets, said Booz & Co.

On the flip side, said the report, these agreements offer a great opportunity for Switzerland and its private banks, as they simplify cross-border private banking and create new strategic options to penetrate some of the largest wealth management markets in Europe, as well as forming an unique multi-shoring value proposition.

More details: http://www.booz.com/media/uploads/BoozCo-Swiss-Offshore-Private-Banking-Abgeltungssteuer-Abkommen.pdf