Stamp Duties - Part 1: What are they and what are they levied on?

Stamp duties are a special type of tax that apply to certain legal transactions. The different types of stamp duties are treated differently. Therefore, Findea explains in a three-part series of articles what this is all about. This first article provides an overview of what stamp duties are and introduces the stamp duty on insurance premiums.

The Stamp Duties

‍Stamp duties are governed by their own law, the Federal Act on Stamp Duties, abbreviated as StG. There are three different types. The first category is emission duties, which apply when domestic securities are issued. The second type are turnover duties, which apply when securities are bought or sold. The last category consists of duties on insurance premiums.

These taxes are of considerable importance to the federal budget. For the year 2018, revenues of 2.36 billion francs are expected according to the Federal Finance Administration, which corresponds to 3.3% of the federal budget.

‍Stamp Duty on Insurance Premiums

‍The duties on insurance premiums are regulated in Art. 21 ff. StG. Accordingly, the duties apply in particular for liability, household contents, fire, and comprehensive insurance. The calculation of the duty is based on the insurance premium. This duty is most often 5%. For life insurances, which are redeemable and financed with a lump-sum premium, the duty rate is 2.5%.

Particularly exempt are personal insurances. This includes, for example, life insurances financed by periodic premium payments, or unemployment, disability, accident, and health insurances. Normally, the insurer is liable for the duty. An exception exists if the insurance is concluded with a foreign insurer not under federal supervision. In such a case, the insured must pay the duty.

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