The Swiss Federal Department of Finance (FDF) has announced that the Protocol of Amendment of November 4, 2010, to the double taxation agreement (DTA) between Switzerland and Greece has recently entered into force.
According to the FDF, the protocol contains an OECD administrative assistance clause and will contribute to the further positive development of bilateral economic relations.
It notes in its release that: “Aside from an OECD administrative assistance clause, Switzerland and Greece have agreed, amongst other things, to exempt dividend payments to pension funds and public bodies from withholding tax in the future.”
It adds: “The rate of tax the source state is entitled to levy on interest payments has been lowered from 10% at present to 7%. An arbitration clause has also been adopted in the revised DTA with Greece. This will contribute to the definitive avoidance of double taxation.”
The provisions of the Protocol of Amendment apply from January 1, 2012, as the Protocol of Amendment has been approved by parliament in both countries.
According to the FDF, the protocol contains an OECD administrative assistance clause and will contribute to the further positive development of bilateral economic relations.
It notes in its release that: “Aside from an OECD administrative assistance clause, Switzerland and Greece have agreed, amongst other things, to exempt dividend payments to pension funds and public bodies from withholding tax in the future.”
It adds: “The rate of tax the source state is entitled to levy on interest payments has been lowered from 10% at present to 7%. An arbitration clause has also been adopted in the revised DTA with Greece. This will contribute to the definitive avoidance of double taxation.”
The provisions of the Protocol of Amendment apply from January 1, 2012, as the Protocol of Amendment has been approved by parliament in both countries.
