Switzerland, Russia Initial Revised DTA

Switzerland and Russia have recently initialled a revised bilateral double taxation agreement (DTA) to be put in place between the two countries.

According to the Swiss Federal Administration, along with an administrative assistance clause in accordance with the internationally applicable standards, the revised agreement contains various provisions that are beneficial to the Swiss economy.

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.”

“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. This policy will be pursued, and further negotiations are envisaged with important countries.”

Although the content of the revised agreement with Russia is to remain confidential at first, the next step is for it to be disclosed to the Swiss cantons and business associations concerned for their comments. The agreement will then be signed and subsequently presented to the National Council and Council of States for approval.

The administration notes that once the partner state has provided its approval, the agreement can be ratified and can then enter into force.

March 3^rd, 2011

Source: tax-news.com