On October 21, 2016 the Swiss Federal Department of Finance (FDF) issued a press release announcing that it has decided to set the remuneration for prematurely paid amounts (Vergütungszinssatz) of direct federal tax at 0% for the calendar year 2017. According to the FDF by doing so it reacts to the persistently low interest rate and the negative interest rates.

In its press release the FDF states that in recent years the negative interest rates have led to a growing number of taxpayers to voluntary pay the direct federal tax before its due date. These taxpayers on their turn received a compensatory interest of 0.25% over the period from the date of prepayment until the due date. If in the future the interest rates go up gain, the FDF will review the rate of the compensatory interest.

In its press release the FD states that whereas the rate of the compensatory interest has been set at 0%, the rate of default interest and the rate of the interest paid over reimbursements remain at 3%.

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