Turkey And Switzerland Discuss Economic Issues, Sign DTA

by Ulrika Lomas, for LawAndTax-News.com, Brussels

26 May 2008

Officials from Turkey and Switzerland met in the Turkish capital, Ankara last week to discuss matters of a commercial and economic nature.

According to a report from the Turkish Press, Turkey's Deputy Undersecretary, Ulker Guzel and Switerland's head of Bilateral Economic Relations, Monica Ruhl deliberated over several subjects important to both countries, including measures to increase bilateral investment, disputed trade issues, and various other matters.

An agreement between Switzerland and Turkey with the aim of eliminating the double taxation of income tax was then signed in Bern on Thursday, following bilateral discussions focusing on budgetary and fiscal policies.

Negotiations concerning this agreement began back in 1986. The differing policies on agreements pursued by each country explain why the process has been so drawn out, and according to the Swiss authorities, show "the determination of the parties to reach a compromise".

The agreement aims to stimulate further development of economic relations and will help to strengthen the ties between the two countries.

To a large extent this agreement follows the OECD Model Agreement and Swiss policies in this regard. It will shortly be submitted to the Swiss Federal Parliament for approval, and will only come into effect after being adopted by the Swiss and Turkish authorities.

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