Switzerland, Slovakia Initial Revised DTA
Friday, March 12, 2010
It has recently emerged that Switzerland and Slovakia have initialled a revised
bilateral double taxation agreement, containing the Organization for Economic
Cooperation and Development’s (OECD) standard on tax information exchange.
Following the successful conclusion of recent negotiations, Switzerland and Slovakia
have initialled a Protocol of Amendment on the existing double taxation agreement
(DTA) in place between the two countries. According to Switzerland’s Federal
Administration, the administrative assistance clause is in line with the key points
agreed by the Federal Council. Switzerland’s agreement with Slovakia is
the 20th containing an administrative assistance clause, the Federal Administration notes.
Since the Swiss Federal Council’s decision on March 13, 2009, to extend
administrative assistance in tax matters, Switzerland has initiated corresponding
negotiations with numerous states. Since then, the Federal Council has also approved
the first ten dispatches on revised DTAs conforming to Article 26 of the OECD’s
Model Convention, and has subsequently submitted them to parliament for approval.
According to a statement from the Swiss Federal Administration: “Along with
extending administrative assistance in tax matters, Switzerland has also been
able to negotiate various benefits for the economy in the negotiations with these
countries, such as reductions in withholding tax on dividends, interest and royalty
payments, as well as the introduction of an arbitration clause. The avoidance
of tax discrimination has also been achieved. This policy will be pursued and
further negotiations are already envisaged with important countries.”