Switzerland signs first DTA with Exchange of Information Clause

Switzerland and Denmark have agreed at a technical level to the extension of administrative assistance in tax matters under Art. 26 of the OECD odel Convention. The tax authorities of both States initialed a revised double taxation agreement (DTA). The DTA was negotiated in accordance with the key points agreed by the Federal Council.

The initialed double taxation agreement (DTA) with Denmark will be submitted to the cantons and business associations for their comments. The DTA will then be submitted to the Federal Council, which will decide on the authorisation for signing.

After the DTA has been signed, the Federal Assembly must approve it before it can come into force.
According to the Federal Council the first double taxation agreement with the new administrative assistance provisions should be subject to an optional referendum. However, as has been the case to date, this decision rests with parliament.

The Federal Council decided on 13 March 2009 that Switzerland would change policy on international cooperation in tax matters and adopt the OECD standard on administrative assistance in tax matters under Art. 26 of the OECD Model Convention.

The decision will permit an exchange of information on tax matters in individual cases where a specific and justified request has been made. The Federal Council instructed the Federal Department of Finance FDF to immediately enter into negotiations on the revision of the DTAs with the USA and Japan and then with other OECD and EU States.

Switzerland will in any case only share information on a individual basis, and only when its clear that the account holder is not dodging any taxes. In all other cases the Swiss bank secrecy will remain as strong as before.

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