Last week President Merz met the French Budget Minister Eric Woerth for talks in Bern. A revised double taxation agreement (DTA) under Article 26 of the OECD Model Convention was initialled by the tax authorities of both countries. Other topics included the Agreement on the Taxation of Savings Income with the EU.
President Merz outlined Switzerland's intention to adopt the OECD standard concerning administrative assistance. France is now the fourth country with which the Swiss tax authorities have initialled a DTA with the extended administrative clause in accordance with the OECD standard. The initialled DTA with France will be submitted to the cantons and business associations concerned for their comments. After being signed, the Federal Assembly must approve the agreement and decide whether a referendum is required before the DTA can come into force.
The Taxation of Savings Income Agreement concluded between Switzerland and the EU was also discussed during the meeting. President Merz reiterated the intention of the Federal Council to retain the co-existence model and to reject automatic exchange of information. However he once again emphasised Switzerland's readiness to discuss improvements to the Taxation of Savings Income Agreement with the EU.
A comprehensive report in our Intelligence Report series describing offshore confidentiality in a number of key countries is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report2.asp.
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