Switzerland and Australia have signed a new double taxation agreement (DTA) in the area of taxes on income. It replaces the agreement applicable since 1981 and contains provisions on the exchange of information in accordance with international standards.
The government said the new DTA, signed in Sydney, would contribute to the further positive development of bilateral economic relations between Switzerland and Australia, which unlike Switzerland is a member of the G20.
According to a statement on Tuesday by the State Secretariat for International Financial Matters (SIF), Switzerland and Australia have agreed that both countries may levy withholding tax of no more than five per cent on gross dividends earned on significant interests (previously 15 per cent).
After negotiations finished, a report on the new DTA with Australia was submitted to the cantons and the business associations concerned for their comments. They approved the signing.
The new agreement still has to be approved by parliament in both countries before it can come into force. It is subject to an optional referendum in Switzerland.