SFC Authorizes Signing Of Revised Swiss DTAs

by Ulrika Lomas, Tax-News.com, Brussels

25 August 2009

The Swiss Federal Council has approved the first six double taxation agreements (DTAs) that include the article on administrative assistance in accordance with Art. 26 of the OECD Model Convention, and authorised their signature. In November Parliament will be asked to consider the issue of an optional referendum.

The Federal Council has given the green light to the signing of the DTAs with Denmark, Luxembourg, Norway, France, Mexico and the UK. The cantons and business associations with an interest in the DTAs were consulted and they all welcomed the conclusion of the DTAs. Since the Federal Council decision of 13 March 2009 on the extension of administrative assistance in tax matters, Switzerland has negotiated and initialed a revised administrative assistance clause in accordance with Article 26 of the OECD Model Convention in the DTAs with thirteen states, also including the USA, Japan, the Netherlands, Poland, Austria, Finland and Qatar.

In order to be removed from the so-called "grey list" compiled for the G20 by the OECD Secretariat, twelve agreements meeting the OECD standard on administrative assistance must be signed. Following their signature, the agreements will be published.

In the view of the Federal Council, the first double taxation agreement with the new administrative assistance provisions approved by parliament should be subject to an optional referendum. However, the final decision as to whether or not a double taxation agreement should be subject to an optional referendum rests with parliament.

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