CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Switzerland, Tajikistan Sign DTA

Switzerland, Tajikistan Sign DTA

by Ulrika Lomas, Tax-News.com, Brussels

25 June 2010


Switzerland and the Republic of Tajikistan have signed a double taxation agreement (DTA) in the area of taxes on income and assets, contributing to the further positive development of bilateral economic relations. The agreement contains no provisions on the exchange of information in accordance with the Organization for Economic Cooperation and Development’s (OECD) standard.

According to the Swiss Federal Administration, the agreement largely follows the OECD model convention and Switzerland's agreements policy respectively. In accordance with the agreement, for dividend payments the source state is in principle entitled to levy a tax of up to 15% of the gross dividend. In the case of a stake of at least 20% in the capital of the company making the payment, this tax decreases to 5% of the gross dividend. As regards interest payments, the agreement makes provision for a general withholding tax of 10% with numerous exceptions. Regarding royalty payments, the tax is 5% of the gross amount.

The Federal Administration states that: “The conclusion of the DTA with Tajikistan promotes mutual trade and economic relations. Thanks to the DTA, new markets have been opened up and favourable conditions for future investments have been created.”

It adds: “There has been no DTA between Switzerland and the Republic of Tajikistan up to now. Because the minimum delay is being sought for bringing the agreement into effect, Switzerland and Tajikistan have expressly agreed to waive amending the agreement negotiated by inserting an extended administrative assistance clause in accordance with the OECD standard.”

A report on the agreement is due to be submitted to the Swiss cantons and business associations concerned for their comments. They have welcomed the signing of the agreement.

TAGS: tax | investment | business | double tax agreement (DTA) | interest | royalties | Organisation for Economic Co-operation and Development (OECD) | agreements | withholding tax | Switzerland | dividends | Tajikistan

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »