Switzerland | Private Agreements for the Avoidance of Double Taxation

Print

The Swiss Federal Council is in favour of recognising private agreements for the avoidance of double taxation.

Today the Federal Council adopted the dispatch on a corresponding federal act. The existing powers of parliament and the people will not be restricted as a result.

The federal act should empower the Federal Council to recognise agreements between private institutions for the avoidance of double taxation on income and capital, provided a treaty cannot be concluded for reasons of international law. This concerns territories that Switzerland does not recognise as states. The federal act refers solely to the recognition of contracts for the avoidance of double taxation in relation to such territories.

Double taxation agreements (DTAs) are normally entered into by two states and are thus considered bilateral treaties. The federal act will also make it possible to strengthen economic relations with territories that Switzerland does not recognise as subjects of international law. Other states (e.g. Belgium, the UK, Sweden and Singapore) have similar regulations concerning the recognition of private agreements for the avoidance of double taxation.

The act will probably apply only in relation to a few territories and describes the prerequisites for such recognition in detail. The Federal Council will consult the relevant parliamentary committees in advance. The act is subject to an optional referendum.

(Source: Federal Department of Finance)

BLOG COMMENTS POWERED BY DISQUS