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France and Switzerland have signed an international agreement on the tax system applicable to EuroAirport Basel Mulhouse Freiburg (EAP).
The agreement was signed by Swiss Federal Councillor Didier Burkhalter and the French Secretary of State for European Affairs, Harlem Desir. The agreement aims to establish a long-term legal regime to ensure that the airport and its businesses remain attractive and continue to develop.
Under the deal, Swiss value-added tax will be levied in the Swiss area of EAP. France and Switzerland will split the receipts from corporation tax paid by EAP, with all stakeholders taking a share.
Companies in the Swiss area will pay French income tax and Swiss capital tax. However, they will not be liable to the main local ancillary taxes levied in France, to which the Swiss tax is considered equivalent.
The French Directorate for Civil Aviation will be compensated for services provided in the Swiss area of the EAP.
EAP handled over seven million passengers in 2016. Around 6,200 people work at the site. According to the Swiss Federal Council, under the new regime, the overall tax burden on businesses in the Swiss area will similar to what it is currently.
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