jurisdiction

1. Is there a specific tax regime for carried interest in your jurisdiction?

No.

2. What is the applicable tax treatment?

There are no officially published guidelines from the Federal Tax Administration and cantonal practise may differ, but the general principle is that the carried interest will be classified as income from employed or from self-employed activity (depending on the legal setup of the fund managers) to the extent that it exceeds the return attributable to personal investment by such fund manager. A typical optimization setup would be to structure the carried interest through an (opaque) fund management company from which the fund manager may draw a mixture of salary and dividends. 

3. Under which conditions are the regime applicable?

N/A.

4. Who are the beneficiaries?

N/A.

5. Which types of funds are concerned?

The legal form or regulatory classification of the fund does not have any bearing on the tax treatment of the carried interest. 

6. Is carried interest subject to social security in your jurisdiction?

To the extent that the carried interest is classified as income from employed or from self-employed activity, social security contributions apply in Switzerland. There is no cap for contributions under the so-called 1st pillar (i.e. general social security contributions, excluding payments to the pension fund). 

7. Any other key information? 

N/A.