I’ve a question about taxation of bonds with:
- maturity of several years
- annual capitalization of interest and
- payment of said interest only after bond’s maturity
Under the Swiss tax rules, is the yearly capitalization deemed a taxable event (i.e. more or less similar to the concept of “virtual dividend” from the accumulating ETF, which is treated as an income even though technically there is no payment) or rather interest from a bond is taxed only at the maturity (i.e. the moment the final amount is paid)?
Thanks in advance!