London, UK (PRWEB UK) 31 May 2012
The Swiss Federal Council has recently submitted to parliament the bilateral withholding tax agreements with Germany and the UK.
The agreements make it possible for foreign taxpayers who hold bank accounts in Switzerland to be taxed in accordance with the regulations of their country.
The agreements govern the future taxation of “investment income”. This is an automatic exchange of information in the area of “investment income.”
These tax agreements are directly applicable; they nonetheless require legal provisions in Switzerland for implementation and enforcement. They need ratification by the people of Swiserzerland to agree on parting with millions of Swiss franks’ in back tax to theses countries “Would we vote for this!”
Under the new tax agreements residents in their relevant countries can retrospectively have their existing bank accounts in Switzerland taxed by making a one-off payment or by disclosing their accounts.
Future “investment income and capital gains” will be subject to a withholding tax. Switzerland is reaffirming its efforts to ensure a competitive financial centre with integrity.
Switzerland has signed three landmark withholding tax agreements to date, Germany, the United Kingdom and Austria. The Federal Council is expected to submit the agreement with Austria to parliament soon.
The withholding tax agreements with Germany, the United Kingdom and Austria, as well as the associated International Withholding Tax Act, are due to be considered by parliament during the upcoming summer session and to enter into force at the start of 2013 if they are ratified.
Appleton Richardson & Co