By Davide Anghileri, College of Lausanne
Switzerland’s Federal Council, throughout its assembly on four November, agreed to important amendments to the legal guidelines regarding tax treaties. The brand new laws would apply supplied the relevant tax treaty doesn’t include any deviating provisions.
The dispatch on the Federal Act on the Implementation of Worldwide Tax Agreements, accepted by the Council, goals to adapt Swiss legislation to the adjustments made to worldwide tax legislation in recent times.
The challenge intends to fully amend the Federal Act of 1951 on the Implementation of Worldwide Federal Conventions on the Avoidance of Double Taxation in order to make sure that tax agreements can proceed to be utilized simply and with authorized certainty sooner or later.
The brand new legislation would stipulate how mutual settlement procedures in tax treaties are to be carried out on the nationwide stage.
Furthermore, the brand new legislation incorporates the important thing factors on withholding tax reduction primarily based on worldwide agreements, in addition to felony provisions in reference to reduction from withholding taxes on capital revenue.
Therefore, the Federal Council is proposing to complement the prevailing requirements with further regulation.