Switzerland, Greece Amend Double Tax Pact

by Ulrika Lomas, Tax-News.com, Brussels

08 November 2010

The Swiss government has announced that it has signed a protocol to the convention for the avoidance of double taxation and fiscal evasion with respect to taxes on income with Greece, signed originally on June 16, 1983.

The agreement was signed by Federal Councillor Eveline Widmer-Schlumpf and by the Greek Ambassador in Switzerland, John Mourikis.

The revised agreement incorporates the Organization for Economic Cooperation and Development model agreement for tax information exchange, allowing the respective countries' tax authorities to obtain tax information upon request to facilitate in civil tax matters and to aid in the investigation of fiscal crime.

In addition to the tax information exchange provisions, the treaty will now provide more beneficial treatment of dividend payments, including exempting occupational benefit schemes and public bodies from withholding tax. The withholding tax rate on interest payments has also been reduced from 10% to 7%. Lastly, an arbitration clause has also been adopted.

The agreement will enter into force after the respective territories have completed their individual ratification procedures.

Recommended