Change in the interest rate for the amortization of non-interest-bearing claims

According to the Finance Department’s current understanding, non-interest-bearing or unusually low-interest-bearing claims that are not due for payment until the end of the year (i.e., 12% per year) may be discounted at 1% per month (i.e., 12% per year) until their maturity. The discounting and the associated depreciation of the claims resulted in a reduction in taxable profit. Given the low interest rate levels in recent years, the Finance Department has now rejected this generous interpretation and amended RZ 2377 EStR. The discounting factor will henceforth always be based on the current interest rate level. Future expenses (collection costs, interest payment charges, etc.) are not to be taken into account when calculating amortization. The bank’s standard interest rate can be used as the interest rate; this rate will often be converted to a monthly rate. To avoid any discussions regarding amortization during operational audits, the choice of amortization interest rate should be documented accordingly (e.g., by providing evidence of own refinancing costs, etc.).

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