Switzerland Discusses Tax Treaties With Saudi Arabia

by Ulrika Lomas, Tax-News.com, Brussels

28 May 2009

Swiss President Hans-Rudolf Merz (pictured) travelled to Saudi Arabia on a two-day official visit beginning May 22. During the course of the visit he discussed several issues between the two countries including the imminent free trade agreement between the European Free Trade Association, of which Switzerland is part, and the Gulf Cooperation Council. The two delegations also called upon negotiations to begin for the signing of a convention for the avoidance of double taxation in order to further increase economic cooperation.

During the course of the meetings an exchange took place on bilateral issues and the global financial and economic crisis. Issues to do with the inter-faith dialogue, the minaret initiative and important regional issues were also discussed. Both sides welcomed the good bilateral relations and reiterated their willingness to intensify cooperation on the political and economical levels.

In addition President Merz used the meeting with the Finance Minister and the Governor of the Monetary Agency to discuss with Saudi Arabia, as a G-20 country, measures to combat the global financial and economic crisis, to open talks on topics to do with international financial institutions such as the IMF and to explain Switzerland's stance on the OECD.

Both parties discussed promoting mutual investments on the basis of the Investment Protection Agreement which only recently came into force and expressed their intention to start negotiations to conclude a double taxation agreement. The imminent signing of a free trade agreement with the Cooperation Council for the Arab States of the Gulf within the scope of the European Free Trade Association was also discussed, together with a bilateral Air Transport Agreement and intensification of economic ties.

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