Switzerland: Tax Treaties With Albania, Macedonia and India Come Into Force

Ulrika Lomas, Tax-news.com, Brussels

01 February 2001

Coming into force in Switzerland recently were tax treaties with both Macedonia and Albania. A protocol to a tax treaty with India also came into force on January 15.

On 14 April 2000 Switzerland and Macedonia signed a new income and capital tax treaty. Basically, the treaty follows the OECD model convention and the Swiss treaty policy. The treaty entered into force on 27 December 2000. It applies to withholding taxes levied on or after 1 January 2001 and to other taxes levied on or after 1 January 2000.

The new income and capital tax treaty between Switzerland and Albania, which was signed in November 1999, entered into force on 21 December 2000. It applies to income realised on or after 1 January 2001.

With regards the impending tax treaty with India, Switzerland and India signed a protocol to the Swiss-Indian tax treaty of November 1994 back in February 2000. The Swiss-Indian protocol aims at improving the competitiveness of Indian enterprises doing business in Switzerland. It entered into force on 20 December 2000. The new provisions apply to Swiss withholding taxes levied on or after 1 January 2001 and to Indian withholding taxes levied on or after 1 April 2001. The other provisions apply to Swiss taxes of the fiscal year 2001 (or later) and to Indian taxes of the fiscal year starting 1 April 2001 (or later).

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