30.07.2019 A new double taxation agreement between Switzerland and Zambia comes into force taking into account all these aspects, it is important to take advantage of the double taxation conventions between Switzerland and its partners – the countries – as they offer a great opportunity to companies that want to avoid excessive taxes or double taxation for their profits. No withholding tax is applied on royalties paid to foreign beneficiaries. Profits repatriated abroad by the Swiss establishment of a foreign company do not attract withholding tax, regardless of a double taxation agreement. In countries with which Switzerland has no DTT, taxes levied on income and wealth cannot be credited with Swiss taxes and the underlying income or assets are not exempt from Swiss tax. However, the taxpayer can claim an irrecreative foreign tax deduction. On 13 March 2009, the Federal Council announced that Switzerland intends to adopt OECD standards for mutual tax assistance, in accordance with Article 26 of the OECD Model Tax Convention. The decision allows the exchange of information with other countries in individual cases where a concrete and reasoned request has been made. The Federal Council has decided to withdraw the reserve for the OECD`s model tax treaty and to begin negotiations on the revision of double taxation conventions. However, Swiss banking secrecy remains intact. Double taxation agreements (DBAs) avoid double taxation of individuals and corporations with an international relationship in the area of income and capital taxes. They are therefore an important element in the promotion of international economic activity.
Switzerland currently has DBAs with more than 100 countries and is looking to further develop its contractual network. Switzerland also has eight agreements to avoid double taxation on inheritance and inheritance tax. In October 2010, an agreement was signed to begin negotiations for an agreement to tax unreported British accounts in Switzerland and other information regarding tax and banking information shared between the two states. The agreement will strengthen, among other things, cross-border tax cooperation and improve banks` access to the market. Negotiations began in early 2011 and the agreement was signed on 6 October 2011. On March 20, 2012, a protocol was signed to clarify outstanding issues. 28.10.2019 Amendments to the double taxation agreement with the United Kingdom in force 20.07.2020 Switzerland and Cyprus sign the protocol for amending their double taxation agreement As a general rule, two states impose the same income or assets of a taxpayer. Most of the provisions of a DBA are devoted to the prevention of double taxation by granting States parties the right to tax different types of income and property.