Switzerland, Poland To Conclude OECD Model Tax Treaty

by Ulrika Lomas, Tax-News.com, Brussels

15 April 2009

Switzerland has announced that it is to include Poland in the list of fourteen countries with which it plans to conclude OECD model double taxation agreements. It is understood following Swiss Vice-President Doris Leuthard’s visit to Warsaw this week, that an agreement with Poland is foreseen in the near future.

During Leuthard’s meeting with Polish Minister of the Economy, Waldemar Pawlak in Warsaw, enhancing bilateral cooperation was discussed and the Vice-President particularly noted Poland’s favourable economic situation despite the crisis, underscoring the success of recently implemented reforms.

Leuthard expressed Switzerland's wish to enhance bilateral trade and investment, which amounted to CHF3.8bn in 2009. At the meeting Leuthard stated:

“Switzerland and its businesses are very pleased with the expansion of the Polish economy, which is why we are striving to broaden economic cooperation.”

The conclusion of a revised agreement with Poland, will enable tax information to be exchanged upon request in situations where there is sufficient evidence of the perpetration of a fiscal crime.

Swiss President Hans-Rudolf Merz confirmed Poland, Japan and the US’s position at the forefront of Switzerland’s plans to conclude OECD standard agreements with fourteen interested OECD member states after a cabinet meeting on April 8.

Switzerland and the US are to begin negotiations on a revised double tax treaty on April 28. Switzerland is expected to conclude its first OECD model agreement with Japan as negotiations are currently at an ‘advanced stage’. Switzerland's first revised double agreement will be subject to an optional referendum as announced by the Federal Council on April 8, 2009.

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