THE Swiss Federal Council is reported to
have submitted six DTAAs with South
Korea, Malta, Romania, Sweden, Singapore and Slovakia, to parliament for
the formal approval.
The DTAAs albeit contain the OECD standards on tax information exchange but
also prescribe various provisions that are beneficial to the Swiss economy.
The negotiated benefits are the reductions in withholding
tax rates. In some agreements full exemption is provided for the payment of
dividends, interest and royalties from liability
to withholding tax at source.
Some agreements also contain arbitration clauses within the scope of MAP. The
agreements are protocols to revise existing double tax agreements with the
exception of the treaty with Malta, which is the first DTAA between the two
countries.
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