en de es fr it pt zh-CN Find us on Twitter Find us on LinkedIn

Switzerland, Liechtenstein Conclude DTA Talks

Switzerland and Liechtenstein have concluded negotiations toward a new double tax agreement (DTA), which should enter into force from January 2017.

Switzerland's Federal Department of Finance (FDF) announced on February 5, 2015, that talks concluded on February 2. The FDF expects the deal to be signed this summer and, pending the completion of respective national approval procedures, for it to be applied from January 1, 2017.

The new DTA is based on the Organisation for Economic Cooperation and Development's (OECD's) model agreement, and covers income and capital. It will replace a 1995 agreement currently in force, which governs only the taxation of certain income. Maximum withholding tax rates for dividends, interest, and royalty income will be prescribed by the new DTA, with confirmation of these rates when the text of the DTA is published after its signature.

The DTA will also cover the taxation of AHV pensions. These will be taxed solely in the state of residence. In the case of cross-border commuters, the respective state of residence will continue to retain the right of taxation.

Benefits from occupational pensions will be subject to taxation in the recipient's country of domicile. To take into account pensioners who in the past were not cross-border commuters in gainful employment, Switzerland will make an annual equalization payment of CHF450,000 (USD486,900) to Liechtenstein. It has not yet been decided how this sum will be distributed among the relevant authorities.

News

Quantum Auditors & 123 Consulting joins TGS Global Network

TGS are proud to be in South Africa with our most recent member, Quantum Auditors / 1.2.3. Consulting. With offices situ

Read more >


Massie Turcotte joins TGS Global Network

TGS are proud to announce a new member in Canada.   Massie Turcotte gives TGS a presence that stands out from other

Read more >


PGK Consultores joins TGS Global Network

TGS is delighted to announce the membership of PGK Consultores, Argentina. PGK is a dynamic firm whose partners began th

Read more >


Garssa Consulting has joined the TGS Global Network

TGS welcome Garssa Consulting to TGS. In 2012, Garssa Consulting saw a gap in the Colombian market and established a hig

Read more >


Nakamoto & Company has joined the TGS Global Network

We are delighted to welcome our first Japanese member firm, Nakamoto & Company / Nakamoto International Tax Corporat

Read more >


>