Swiss, Taiwan Private DTA In Force

by Ulrika Lomas, Tax-News.com, Brussels

10 January 2012

The Swiss Federal Department of Finance has announced that the private double taxation agreement (DTA) effective for Chinese Taipei (Taiwan) has been published in the Confederation’s federal gazette.

The FDF notes in its release that the agreement entered into force on December 13, 2011, explaining that the provisions on the exchange of information are applicable from January 1, 2012, and that all of the other provisions are applicable with retroactive effect from January 1, 2011.

The two contracting parties to the private double taxation agreement are the Trade Office of Swiss Industries in Taipei and the Taipei Cultural and Economic Delegation in Switzerland.

The FDF said that the private double taxation agreement contains provisions which are typical of agreements between two states on the avoidance of double taxation in the area of taxes on income.

“Based on the federal act of June 17, 2011, the Federal Council is empowered to recognise agreements between private institutions for the avoidance of double taxation on income and capital, provided a treaty cannot be concluded for reasons of international law,” the department stated.

According to the FDF, in terms of content, the private double taxation agreement follows standard Swiss practice for agreements in the area of double taxation and is based on the OECD Model Convention. It contains provisions on the exchange of information in line with the internationally applicable standard.

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