Switzerland and Greece sign revised double taxation agreement
Today in Bern, Federal Councillor Eveline Widmer-Schlumpf and the Greek Ambassador in Switzerland, John Mourikis, signed a revised double taxation agreement (DTA) in the area of taxes on income and capital. The DTA also contains provisions on the exchange of information which were negotiated in line with the parameters decided by the Federal Council and are in accordance with the OECD standard. The revised DTA will contribute to the further positive development of bilateral economic relations.
In addition to the adoption of a provision on the exchange of information in accordance with the OECD standard, the protocol specifies, amongst other things, that dividend payments to occupational benefits schemes and public bodies will be exempt from withholding tax. The rate of tax the source state is entitled to levy on interest payments has today been lowered from 10% 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. After negotiations finished, a report on the agreement with Greece was submitted to the cantons and business associations concerned for their comments. They largely approved the signing of the agreement.
The agreement is expected to be effective as of January, 01, 2011.
Click here to download the full text of the protocol.
Source: Swiss Federal Department of Finance (http://www.efd.admin.ch)