Double taxation agreement initialled with Peru
Switzerland and Peru have concluded negotiations on a new double taxation agreement (DTA) and have initialled the agreement.
In a statement on Monday the finance ministry said it contained an administrative assistance clause in accordance with internationally applicable standards.
Since the government decided in March 2009 to extend administrative assistance in tax matters, Switzerland has concluded corresponding negotiations with more than 30 states.
The ministry said that, in the process, Switzerland had been able to negotiate various benefits for the economy, such as reductions in withholding tax on dividends, interest and royalty payments or the introduction of an arbitration clause. In addition, tax discrimination had been avoided or eliminated.
The agreement can be ratified and enter into force once Peru has also provided its approval.
Switzerland was pressured into signing a series of revised tax deals with other governments in order to be removed from a “grey list” of tax havens that was established by the OECD (Organisation for Economic Co-operation and Development) in April 2009.
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