Switzerland and Peru have recently concluded negotiations on a new double taxation agreement (DTA) and have initialled the agreement, according to the Swiss Federal Administration.
Along with an administrative assistance clause in accordance with internationally applicable standards, the new agreement contains various provisions that are beneficial to the Swiss economy, the administration notes.
The administration states that: “Since the Federal Council decision of March 2009 on extending administrative assistance in tax matters, Switzerland has concluded corresponding negotiations with over 30 states.”
It adds: “In the process, Switzerland has also been able to negotiate various benefits for the economy, such as reductions in withholding tax on dividends, interest and royalty payments, or the introduction of an arbitration clause. In addition, tax discrimination has been avoided or eliminated.”
The administration also notes that this policy will be pursued, and that further negotiations are envisaged.
Commenting on the agreement with Peru, the administration explains that the content of the new bilateral agreement is to remain confidential at first, and that the next step is for it to be disclosed to the Swiss cantons and business associations concerned for their comments.
Finally, the administration points out that the agreement will then be signed and subsequently presented to the Swiss National Council and to the Council of States for approval, before being ratified.
Once the partner state has also provided its approval, the agreement can enter into force.
Along with an administrative assistance clause in accordance with internationally applicable standards, the new agreement contains various provisions that are beneficial to the Swiss economy, the administration notes.
The administration states that: “Since the Federal Council decision of March 2009 on extending administrative assistance in tax matters, Switzerland has concluded corresponding negotiations with over 30 states.”
It adds: “In the process, Switzerland has also been able to negotiate various benefits for the economy, such as reductions in withholding tax on dividends, interest and royalty payments, or the introduction of an arbitration clause. In addition, tax discrimination has been avoided or eliminated.”
The administration also notes that this policy will be pursued, and that further negotiations are envisaged.
Commenting on the agreement with Peru, the administration explains that the content of the new bilateral agreement is to remain confidential at first, and that the next step is for it to be disclosed to the Swiss cantons and business associations concerned for their comments.
Finally, the administration points out that the agreement will then be signed and subsequently presented to the Swiss National Council and to the Council of States for approval, before being ratified.
Once the partner state has also provided its approval, the agreement can enter into force.
