Switzerland and Slovakia have recently signed in Bratislava a protocol amending the existing bilateral double taxation agreement (DTA) in place between the two countries in the area of taxes on income and capital.
According to the Swiss federal administration, the revised DTA contains provisions on the exchange of information in accordance with the Organization for Economic Cooperation and Development’s (OECD) standard. The provisions were negotiated in line with the parameters decided by the Federal Council.
Aside from the exchange of information in accordance with the OECD standard, Switzerland and Slovakia have agreed withholding tax exemption for dividend payments from significant holdings (at least 10%), as well as for dividend payments to pension funds, the contracting states and their central banks. In future, the tax withheld at source on interest may not exceed 5% (previously 10%). An arbitration clause was also included in the agreement.
Following the conclusion of the negotiations, a report on the revised agreement was submitted to the Swiss cantons and business associations concerned for their comments. The Swiss administration notes that the Conference of Cantonal Finance Directors and the business associations largely approved the signing of the agreement.
According to the Swiss federal administration, the revised DTA contains provisions on the exchange of information in accordance with the Organization for Economic Cooperation and Development’s (OECD) standard. The provisions were negotiated in line with the parameters decided by the Federal Council.
Aside from the exchange of information in accordance with the OECD standard, Switzerland and Slovakia have agreed withholding tax exemption for dividend payments from significant holdings (at least 10%), as well as for dividend payments to pension funds, the contracting states and their central banks. In future, the tax withheld at source on interest may not exceed 5% (previously 10%). An arbitration clause was also included in the agreement.
Following the conclusion of the negotiations, a report on the revised agreement was submitted to the Swiss cantons and business associations concerned for their comments. The Swiss administration notes that the Conference of Cantonal Finance Directors and the business associations largely approved the signing of the agreement.
