DTAs also have an important function for investments of all kinds abroad, as they avoid double taxation of foreign investment profits and income. In addition, a DTA generally contains certain prohibitions of discrimination, a dispute settlement mechanism and a clause on the exchange of information upon request. The Protocol also provides for various amendments to articles 16 (Directors` fees), 17 (Artists and athletes), 18 (Pensions), 19 (Civil service) and 25 (Non-discrimination), as well as the addition of a Final Protocol to the Treaty. Other changes from the IRS`s point of view, for example: concern (i) the treatment of capital gains on shares in relation to real estate companies and (ii) the adaptation of the DTA`s provisions on corporate profits (Article 7), transfer pricing (Article 9), the elimination of double taxation (new Article 23), non-discrimination (new Article 24), mutual agreement (new Article 25) and exchange of information (new Article 26) more to the OECD model / Belgian model text (as available in 2014). Exporting companies and groups with foreign subsidiaries protected against double taxation by a DTA; en.nav.gov.hu/taxation/double_taxation_treaties www.revenue.ie/en/tax-professionals/tax-agreements/double-taxation-treaties/tax-treaties-by-country.aspx?page=R double taxation agreements (DTAs) prevent the double taxation of natural and legal persons with an international link in the field of taxes on income and on capital. They are therefore an important element in the promotion of international economic activities. Switzerland currently has permanent contracts with more than 100 countries and aims to further expand its contract network. Switzerland also has eight agreements to avoid double taxation of inheritance tax and inheritance tax. Our newsletter on current developments in corporate and personal taxation, news on indirect taxes and an overview of relevant legal topics.
Double taxation typically occurs when two states tax the same income or assets of a taxpayer. Most of the provisions of a DTA are aimed at avoiding double taxation by giving States parties the right to tax each type of income and asset. However, they merely restrict the right of taxation of the Contracting States. The taxable amount shall be the domestic law of the Contracting States. 30.07.2019 Entry into force of the new double taxation agreement between Switzerland and Zambia www.government.is/topics/economic-affairs-and-public-finances/tax-treaties/double-taxation-treaties/#panel-7a79c16a-d05d-11e7-941f-005056bc4d74-29 www.mfsa.mt/consumers/useful-links-2/international-tax-unit/double-tax-treaties/ The double taxation agreement between Switzerland and Belgium covers the following types of income: Amendments With the entry into force of the Convention, Switzerland must also notify the depositary of the BEPS Convention that the necessary procedures have been completed. The first such case concerned Luxembourg. In a Memorandum of Understanding of 12 May 2020, the competent authorities of Switzerland and Luxembourg adopted the exact wording of the amendments provided for in the BEPS Agreement (see AS 2020 2641 and AS 2020 2715). The procedure has thus been completed and Switzerland has sent the above-mentioned notification to the depositary of the BEPS Convention. These changes are reflected in the double taxation agreement between Switzerland and Luxembourg. Switzerland intends to align DTAs not modified by the BEPS Agreement with the BEPS minimum standards through bilateral amendments to the DTAs. The elimination of double taxation in Switzerland may result in tax relief through a deduction of tax paid in Belgium or partial exemption from tax paid in Switzerland. www.financnisprava.cz/en/internation-tax-affairs/double-taxation The first articles of the Swiss-Belgian Double Taxation Convention define the territorial limits of the two countries, the persons to whom the Convention applies, the authorities levying taxes, the terms “resident” and “permanent establishment”.
With regard to the beneficiaries of the double taxation agreement between Switzerland and Belgium, they are defined as follows: In order to avoid double taxation of companies and natural persons earning income in two countries, Switzerland implements so-called double taxation agreements (DTAs). The treaties between Switzerland and the Contracting States contribute to the removal of barriers to cross-border economic transactions. According to a 2009 Federal Council decision, the agreements must be based on the OECD Model Convention on Taxes on Income and on Capital. The interactive map gives an overview of the current situation from a Swiss point of view. www.mfsr.sk/en/taxes-customs-accounting/direct-taxes/income-tax/international-taxation/double-tax-treaties/ www.bundesfinanzministerium.de/Content/EN/Standardartikel/Topics/Taxation/Articles/double-taxation.html Among the countries with which Switzerland has signed double taxation agreements is Belgium. Switzerland and Belgium signed their double taxation agreements in 1978 and since the occasional amendment of the convention in 1980. The agreement between the two countries refers to double taxation avoidance with respect to the following: Do double taxation treaties apply to you? Discover our interactive map of double taxation agreements between Switzerland and the contracting countries. www.porezna-uprava.hr/en/EN_porezni_sustav/Pages/double_taxation.aspx www.belastingdienst.nl/wps/wcm/connect/bldcontenten/belastingdienst/individuals/tax-regulations/tax_treaties/overview_of_treaty_countries/overview_of_treaty_countries The additional agreement was signed by both countries on April 10, 2014.
The double taxation agreement with Belgium of 1978 can be adapted to the circumstances given with the supplementary agreement. It contains the current international standard for the exchange of information upon request. The additional agreement entered into force on 19 July 2017. Its provisions shall apply from 1 January 2018. The BEPS Convention entered into force on 1 December 2019. Switzerland wants to align the DTAs with Argentina, Austria, Chile, Iceland, Italy, Lithuania, Luxembourg, Mexico, Portugal, Portugal, South Africa and Turkey. Bern, 07.08.2017 – The supplementary agreement amending the double taxation agreement between Switzerland and Belgium on taxes on income and on capital entered into force on 19 July 2017. It contains an administrative assistance clause in line with the current international standard for the exchange of information on request. The supplementary agreement strengthens the good economic relations between Switzerland and Belgium. mof.gov.cy/en/taxation-investment-policy/double-taxation-agreements/double-taxation-treeties The results of the Base Erosion and Profit Shifting (BePS) project include recommendations that require changes to existing DTAs. Existing DTAs can be adapted to the contractual solutions developed under the BEPS project through the Multilateral Convention for the Implementation of Tax Treaty-Related Measures (BEPS Convention). 28.10.2019 Amendments to the double taxation agreement with Great Britain in force 26.08.2020 The Federal Council adopts messages on the new double taxation agreement with Bahrain and amendments to the DTA with Kuwait The special regulations on frontier workers are contained in the following double taxation agreements: In addition, the additional agreement improves the taxation of dividends, interest and royalties.
In particular, tax exemptions have been agreed in the source State for pension funds. Further improved tax regimes have been negotiated for interest on intra-group loans and dividends paid to certain companies. These rules encourage investment and economic exchanges in bilateral relations between countries. On 19 July 2017, the Federal Department of Finance announced the entry into force of the Protocol to the 1978 Income and Capital Tax Agreement with Belgium. Das am 10. The protocol signed in April 2014 is the first to amend the treaty. The significant changes are as follows: 25.11.2019 Switzerland and Bahrain sign a double taxation agreement According to the Federal Department of Finance, the Additional Protocol to the Double Taxation Convention (DTA) between Belgium and Switzerland, signed on 10 April 2014, entered into force on 19 July 2017 and will generally apply from January 2018. In general, the Protocol updates the current DVB-T of 1978 in order to promote investment and economic exchanges in bilateral relations between countries. www4.skatteverket.se/rattsligvagledning/15311.html www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Internationales_Steuerrecht/Allgemeine_Informationen/2020-01-15-stand-DBA-1-januar-2020.pdf?__blob=publicationFile&v=3 www.maksumaksjad.ee/modules/AMS/article.php?storyid=21 The Commission with Zambia and the protocols amending the DTAs with Ecuador, the United Kingdom and the United States have been in force since the beginning of 2019. .