The Swiss government said Tuesday it is signing a double tax pact with Romania, including a less restrictive exchange of information following changes to Swiss banking secrecy.
MAIN FACTS:
The revision of the double taxation agreement, or DTA, will contribute to the further positive development of bilateral economic relations.
Aside from the exchange of information, Switzerland and Romania have in particular agreed withholding tax exemption for dividend payments from significant holdings of at least 25% in the capital of the company making the payment, as well as for dividend payments to pension funds. In future, interest payments will be subject to withholding tax of no more than 5%. In addition most-favoured-nation treatment was agreed for Switzerland in an arbitration clause. Should Romania negotiate an arbitration clause with another country, the clause agreed between Switzerland and Romania would automatically become applicable.
MAIN FACTS:
The revision of the double taxation agreement, or DTA, will contribute to the further positive development of bilateral economic relations.
Aside from the exchange of information, Switzerland and Romania have in particular agreed withholding tax exemption for dividend payments from significant holdings of at least 25% in the capital of the company making the payment, as well as for dividend payments to pension funds. In future, interest payments will be subject to withholding tax of no more than 5%. In addition most-favoured-nation treatment was agreed for Switzerland in an arbitration clause. Should Romania negotiate an arbitration clause with another country, the clause agreed between Switzerland and Romania would automatically become applicable.
